Directors lend Ironveld £0.2m ahead of expected Grosvenor investment

Ironveld announced on Thursday that it has entered into loan facility agreements with directors Giles Clarke and Nick Harrison for up to £0.2m, to allow it “flexibility” in meeting its operating costs before the planned investment from Grosvenor Resources completed.

The AIM-traded firm had announced an enlarged planned investment in the group by Grosvenor on 21 December.

It said it had now entered into separate agreements with Clarke and Harrison for £0.2m in total, with a maximum total drawdown per month of £60,000.

Interest on funds drawn would be 7% per annum, with an arrangement fee of 2.5% of the facility’s value also applying.

Ironveld said repayment of any funds drawn down plus interest would take place immediately on receipt of Grosvenor funding, or conversion in the event of any future placing.

The facility was conditional on the Grosvenor transactions completing, with 13,333,334 warrants in total exercisable at 1.5p per share.

“As announced on 21 December, Ironveld remains confident that the transactions with Grosvenor will soon complete, but the loan facility provides important flexibility prior to closing of those transactions,” the board explained in its statement.

At 1453 GMT, shares in Ironveld were down 10.77% at 0.87p.