Ironveld PLC on Tuesday said it is considering the sale of the iron, vanadium, and titanium project of the same name in South Africa.

Shares were 12% higher on Tuesday morning in London at 0.84 pence each.

The Ironveld project is located on the Northern Limb of the Bushveld complex in Limpopo province, South Africa.

The company has rights to 56.4 million tonnes of magnetite ore, and the project contains 1.4 billion pounds of vanadium, 27 million tonnes of high purity iron, and 8.3 million tonnes of titanium.

“The project ore body is near surface, enabling simple, opencast mining. The current resource does not include mineralisation on the Luge Farm prospecting right which is near to the current resource and which is yet to be defined but is believed to have the same geology,” said Ironveld.

“The company believes given the potential size of the resources that a sale of the company’s mining rights may be in the best interest in the development of the project and the highest value to shareholders.”

Ironveld has engaged finnCap Ltd to help it explore the sale.

Chair Giles Clarke said: “We believe we have one of the premier in situ high purity iron, vanadium, and titanium deposits in the world and we believe the potential of the project is best recognised by third parties. We have therefore initiated the strategic review to ascertain how our assets can best deliver value to our shareholders.

“We thank shareholders for their continued support of Ironveld and we look forward to providing further updates on the potential sale of our mining rights as appropriate.”

www.ferroalloynet.com