South African speciality metals producer Ironveld’s subsidiary, Ironveld Holdings, has signed an updated term sheet with Sable Exploration and Mining (SEAM) for their joint venture (JV) at the Lapon magnetite plant in Limpopo, South Africa.
The move follows a capital raise in November 2024. The plant is expected to process and sell dense media separation (DMS)-grade magnetite.
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The JV will be structured as a 50/50 partnership between Ironveld Holdings’ subsidiary, Altona Processing, and SEAM’s subsidiary, Lapon Plant.
SEAM has committed to a prepayment of R5m ($271,573) for the magnetite material. However, the final terms of the JV are subject to the signing of the definitive contract and may change.
Despite challenges from heavy rainfall, the construction of the DMS plant is on schedule.
Ironveld expects the plant to commence operations this month, with the first commercial production due next month. The company aims for the plant to reach full capacity by the end of April.
Ironveld Mining is preparing the mine site for commissioning of the DMS plant, while also engaging with the local community and contributing to the social labour programme.
Ironveld Smelting is advancing the design of a water-based atomiser for producing market samples, with final design and cost estimates due by the end of April.
Ironveld CEO Kris Andersson said: “The renegotiated agreement with SEAM significantly enhances Ironveld’s position, increasing our equity stake in the DMS project from 25% to 50%. We are excited to collaborate with SEAM on this strategic partnership and look forward to advancing the project together.”
The company is also working towards the publication of its annual accounts, which is expected by the end of this month. This will enable the resumption of share trading.
Ironveld owns a high-purity iron, vanadium and titanium project on the Northern Limb of the Bushveld Complex in Limpopo.
