Ironveld has entered into confidentiality agreements with potential purchasers of its mining rights for the high-purity iron, vanadium and titanium project in the Bushveld complex in South Africa.
Shareholders would have to be asked for their approval if a deal were struck. This is part of a strategic review by the board. They believe that selling the project might be best for its ongoing development and obtain the highest value for shareholders without having to pour additional cash into the project.
The resources are near to the surface so open cast mining is possible. The existing measured, indicated and inferred resources are 27Mt of iron, 8.3Mt of titanium oxide and 1.4bn tonnes of vanadium.
The share price is 0.98p, up 0.23p on the news, but it is still just below par value. In February, £1.1m was raised at 1.75p a share.
A disposal would leave the company as a shell.
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