Ironveld plc (LON:IRON) told investors that it has delivered sufficient tonnage of sample material to its potential off-take partner.
The company, which is advancing the High Purity Iron project in South Africa’s Bushveld region, noted that the potential buyer can now carry out a full kiln smelting testing.
It subsequently expects to receive the outcome of the test in the next three weeks. After that, the company expects that a long term deal will be reached.
READ: Ironveld final results for 2018
"Our sampling programme is progressing to plan and we are confident of reaching a long term off-take agreement with our potential off-take partner, which would generate significant revenue for Ironveld,” said Peter Cox, Ironveld chief executive.
“I look forward to updating the market further in due course."
Ironveld highlighted that the project’s profile has been boosted as a result of the bulk sampling and rising vanadium prices.
Numerous enquiries have been received from potential development partners, a number of whom have carried out extensive due diligence.
It continues to evaluate all enquiries and will update shareholders with further developments as appropriate.