News blog
Ironveld / Mercury Recycling
- BY: Andrew Hore |
- POSTED: 16/08/2012 |
Mercury Recycling has returned to Aim in the new guise of iron mine developer Ironveld.
The share price fell by one-third to 3.5p, which values Ironveld at £10m. The shares had been suspended at 6.75p a share on 7 March but the share price started falling when it returned from suspension. Even so, a placing raising £3m was done at 6.75p a share and the all share acquisition of Sylvania Platinum’s iron assets in South Africa was based on the same share price. Sylvania intends to distribute to its own shareholders the 203m shares that it has been issued. These shares have not been distributed yet. It is unclear if the shareholders who were interested in the recycling activities are the ones that have sold. The largest trade on the day was worth £5,400 and the smallest was £60. There was hardly any trading in the shares on the previous two days.
Ironveld has acquired prospecting rights on the northern limb of the Bushveld complex north of Mokopane. Ironveld has a 74% stake in the prospecting rights. The required infrastructure is already in place because of the history of the area.
A scoping exercise has been completed and there should be further drilling news in the next few weeks. An in-situ inferred resource of 11.5m tonnes of iron at a 30% cut-off has been found in the first area drilled. There should be a defined measured resource and a bankable feasibility study completed by next July. Production could start in late 2014.
The plan is to mine 2.4m tonnes of magnetite a year in order to produce 1m tonnes of pig iron.
It is not clear what will happen to the recycling businesses. They provide cash flow to help finance the overheads of the company so all the money raised can be used in the development of the iron mine.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2012_34.pdf
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