South Africa focused Sylvania Platinum has completed the sale of its iron ore assets to Mercury Recycling Group for around GBP 13.7 million.

The deal will see Sylvania’s Bushveld iron ore asset pass to Mercury, which is in the process of launching a new exploration and development mining group, now renamed Ironveld.

The new enlarged company is focused on developing iron ore projects within the Bushveld Complex in South Africa.

Ironveld began trading on AIM today following the completion of a placing of 44.4 million shares at 6.75 pence each to raise GBP 3 million to fund work in the Bushveld Complex.

Sylvania said it will make a distribution of the 203 million consideration shares received on completion of the sale today. For every Slyvania share held investors will be entitled to 0.675 of an ordinary share in the new venture.

Sylvania is currently involved in three PGM projects on the Bushveld Igneous Complex of South Africa. The first of these is fully operational, the second is at an advanced stage of development and the third is at the feasibility study stage.

Source - Proactive investor

(www.steelguru.com)