Ironveld soars on confidence around off-take agreement

Ironveld soared on Friday after announcing its confidence in reaching an off-take agreement for its high purity iron, vanadium and titanium project in Limpopo Province, South Africa.

The AIM traded company said it has delivered sufficient tonnage to its potential off-take partner for a full kiln smelting test to be carried out, which it expects to be followed by a long-term agreement after results are returned in the next three weeks.

Peter Cox, chief executive of Ironveld, said: "Our sampling programme is progressing to plan and we are confident of reaching a long term off-take agreement with our potential off-take partner, which would generate significant revenue for Ironveld. I look forward to updating the market further in due course."

The project has been enhanced by the increase in vanadium prices over the last 12 months and the bulk sampling operation, according to Ironveld.

As such, numerous potential development partners have made enquiries with regard to the project, each of which are being evaluated by the miner.

Analysts from Shore Capital said: "A long-term off-take agreement would set Ironveld on the path to executing its strategy of mining and processing its own ore. We understand that the amounts of ore expected to be supplied under such an off-take agreement would not affect Ironveld’s strategy of developing its own smelting capacity."

Ironveld’s shares were up 49.01% at 2.65p at 1220 GMT.