A new exploration and development iron ore mining player has emerged on the Northern Limb of the Bushveld Complex, having successfully listed on London’s AIM stock exchange.On 16 August, newly formed Ironveld raised £3 million (R39.12 million) at £6.75 a share, following the successful initial public offering on London’s alternative stock market and a reverse takeover of another London entity, the Mercury Recycling Group. The cash will be used to fund the exploration and development of iron ore projects within the mineral-rich Bushveld Complex. The company has interests in prospecting rights in the Northern Limb specifically, with rights that cover a group of seven adjacent farms, measuring an area of 165 km2. According to the company, the intention is to mine titanium-magnetite iron ore present across its properties as feedstock for its own pig iron plant. “We intend to mine a magnetite resource of about 2.4 Mtpa, which in turn will supply feedstock for its plant, expected to produce 1 Mtpa of pig iron. There is also potential for vanadium and titanium by-products,” says CEO Peter Cox. With 28 km of outcropping magnetite ore, and 12.8 km drilled to date, the company has a current resource of 11.46 Mt of iron from 6.8 km of strike. The total ore resource target is 40 Mt of iron. With good infrastructure of roads and rail, and access to power and water, as well as a completed scoping exercise, the continuation of exploration and the preparation of a feasibility study is warranted.
The Ironveld board will see that the project is developed rapidly with the intention to commence production in 2015, subject to receipt of the appropriate mining rights and securing the necessary funding.Because the company is venturing into long-term project work in the area, it will consider other iron ore opportunities in the vicinity of its core project, when and if they become available. “We are delighted with the support shown by both existing and new shareholders for the launch of Ironveld. The management team has long-standing experience of the high-quality assets within the group and significant work has already been carried out with the drilling programme well advanced. I believe the board has the right blend of operational and capital markets experience with an exceptional track record of delivering significant returns for shareholders. Ironveld is well positioned to take advantage of further opportunities within the region and beyond,” says chairperson Giles Clarke. The company announced last week that it is facing a legal challenge from a tribe claiming it has rights to the land in the Bushveld Complex, adding that it has taken advice and believes there are no grounds for a case. Sidebar: The deal
- Mercury Recycling Group acquires platinum tailings recovery company Sylvania Platinum’s iron ore assets, held in the Ironveld Group, for £13.7 million
- Ironveld holds interests in prospecting rights in the Northern Limb of the Bushveld Complex north of Mokopane, South Africa
- acquisition is funded through the issue of 203 022 285 new Mercury shares, which are distributed to Sylvania shareholders pro rata to their existing holdings
- Peter Cox is appointed CEO and Sylvania Platinum’s Terry McConnachie joins the board
- Mercury is renamed Ironveld
- Listing and placing to fund the development of the iron ore assets