Ironveld PLC (AIM:IRON) fell over 6% on Friday after the company said it had received a term sheet from a South African investor.
But the group also revealed chief executive Martin Eales’ departure.
Funding promised in the non-binding agreement would allow investment in all of Ironveld’s mining and smelting operations located in South Africa, the group said.
This would include the transition to production of high-purity iron powders, with executive chairman John Wardle describing the proposed funding as an “exciting development”.
Wardle will take over from Eales on an interim basis after Ironveld announced the chief executive had stepped down with immediate effect in the same update.
Shares fell 6% to 0.12p.