Ironveld said Monday it had raised £0.4m through the placing of shares to fund the purchase of a secondary gyratory crusher and magnetic separation equipment to ramp up production in a bid to secure an offtake agreement.
The company raised gross proceeds of £0.4m through the placing of 24,242,420 shares at a price of 1.65p each.
The proceeds of the placing would fund the purchase of a secondary gyratory crusher and magnetic separation equipment that would be used to process the company's magnetite ore in order 'to meet offtake specifications set by a potential off-take partner for commercial scale testing and for general working capital purposes,' Ironveld said.
Ironveld would be paid for the commercial sample and was hopeful that successful testing could result in a long-term offtake agreement.
The required ore had been mined and 1,000 tons had already been shipped to the potential off-take partner, the company said. The equipment to be acquired would allow for a significant increase in the shipment rate.
At 9:23am: (LON:IRON) Ironveld Plc share price was -0.15p at 1.75p