Industrial Development Corporation has approved a R244m funding package to Ironveld subsidiaries for the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa.
The IDC will provide senior loan facilities to Ironveld Mining (Pty) Ltd and Ironveld Smelting (Pty) Ltd.
The funds will form part of an approximately R841 million financing package for the development of the project.
The IDC is providing funding for the Broad-Based Black Economic Empowerment's capital contribution in Ironveld Smelting (Pty) (in line with its 26% shareholding in the smelting project).
Ironveld says it is also in the advanced stages of completing the remaining debt agreements for the project.
And the company says it has also finalised an offtake agreement with Oreport (Pty) Ltd for 100% of the HPI powder production for a period of five years from first production.
This represents 42,000 tonnes per annum of HPI. Oreport (Pty) Ltd is also taking 100% of the titanium slag as previously announced. The Company has now signed offtake agreements for all three products.
Chief executive Peter Cox said: "The IDC is an extremely important partner to have on board and we are very pleased to be working with them on this strategically, economically and socially important project for South Africa. This is a significant step forward in the funding of our project and we are confident of closing the remaining debt package shortly.
"With such a significant financial partner in South Africa, who completed an extensive due diligence exercise on the project and offtake secured across our three products, we are now in the strongest possible position to conclude the financing package on the best terms for shareholders and move towards construction.
"The team remains firmly focused on delivering returns to our shareholders and on delivering this highly exciting project."
At 9:34am: (LON:IRON) Ironveld Plc share price was +0.63p at 5.13p