【Ferro-alloys.com】: Aim-listed strategic metals producer Ironveld has raised £900 000, before expenses, through a placing with investors of two-billion shares at a price of 0.045p apiece.

"Market demand for our dense media separation-grade magnetite both from within the South Africa market and from nearby export countries is exceeding our current processing capacity. We are, therefore, looking to ramp up processing capacity through the acquisition of an additional larger mill and associated equipment.

"In addition, demand is also emerging for unprocessed run-of-mine ore, requiring investment in preparation for meeting demand," says CEO Kris Andersson.

Ironveld's mining division mines vanadiferous-titaniferous-magnetite at its mines in Limpopo for sale to industrial users and to its own smelting division, which processes the group’s magnetite ore into high-purity iron, vanadium slag and titanium slag.

The funds raised from the placing will provide the company with working capital and funds necessary to finance a second, larger ball mill and associated equipment to increase throughput capacity; to procure and commission a drying plant to meet bulk client moisture specification; and develop infrastructure to support bulk delivery logistics, complementing current bagged product operations.

The funds will also be used for the evaluation of additional power generation, including back-up power generation as well as potentially a partial solar-based energy solution, to ensure reliable and sustainable energy back-up supply. 

• [Editor:Alakay]