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Ironveld Share Price Surges on Major Investment Agreement

Updated: 22 Oct 2021

Exploration and development firm Ironveld (LON: IRON) has witnessed a surge in its share price on Friday after it announced a major investment agreement to raise £5.6 million via a share subscription. 

Ironveld will issue 561.5 million new ordinary shares at 1p per share, representing a premium of 90.5% to the mid-market price of 0.525p on 29 March 2021, the last trading day before the announcement that Ironveld was in discussions that might lead to a material transaction.

The shares issued represent 29.9% of the enlarged issued share capital of the company.

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Ironveld and Grosvenor have agreed that Grosvenor will nominate two non-executive Directors to Ironveld's board following completion of the subscription.

Martin Eales, CEO of Ironveld, said:

“We are delighted to be able to announce this transaction today, which has taken a great deal of hard work by the teams on both sides over many months. Ironveld is issuing new equity at a large premium with a supportive new partner. Grosvenor is taking a substantial stake in Ironveld and is focused on ensuring near-term development of Ironveld's project for the benefit of all shareholders.”

Ironveld's share price has surged 37% on the news to 0.84p, its highest price since June and adding to its gains for the year. 

Should you invest in Ironveld shares?

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