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(Sharecast News) - Exploration and development company Ironveld said on Tuesday that its 74%-owned subsidiary, Lapon Mining, has entered into a binding mining operations agreement with Daemaneng Minerals.
Under the agreement, Daemaneng will assume full responsibility for all mining operations at the Lapon site - including all capital investment, operating costs, logistics, labour, compliance, and the establishment of on-site processing infrastructure - thereby eliminating any future mining-related expenditure for Lapon Mining.
The AIM-listed firm said the arrangement effectively transfers operating and funding obligations to Daemaneng, de-risking its cost base while allowing it to retain its full ownership and control of the mining licence and governance oversight.
Based on currently anticipated production levels, Daemaneng was expected to fund approximately ZAR 500m (21.6m) of capital and operational costs at Lapon and will recover verified expenditure from the proceeds from realised sales of mined material, ensuring that returns are aligned with production performance.
Chief executive Kris Andersson said: "This agreement marks a defining moment in Ironveld's transformation and the first tangible step in pivoting the Company towards delivering a Company focused on revenue generation, risk mitigation, and the realisation of the significant inherent value within our assets.
"With no opex or capex commitments in mining, Ironveld is now a leaner, significantly de-risked business, well positioned for sustainable growth and long-term shareholder value creation."
As of 1130 BST, Ironveld shares had surged 22.73% to 0.054p.
Reporting by Iain Gilbert at Sharecast.com
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