LONDON (ShareCast) - (Sharecast News) - Ironveld announced a proposed new major investment by Grosvenor Resources on Friday.

The AIM-traded firm said that conditional only on shareholder approval, Grosvenor would invest £5.6m in the company via a subscription for 561,505,950 new ordinary shares in the company.

The two companies said they agreed that Grosvenor would nominate two non-executive Directors to Ironveld's board, following completion of the subscription.

Ironveld said the subscription remained conditional on shareholder approval being granted at a general meeting.

"We are delighted to be able to announce this transaction today, which has taken a great deal of hard work by the teams on both sides over many months," said chief executive officer Martin Eales.

"Ironveld is issuing new equity at a large premium with a supportive new partner.

"Grosvenor is taking a substantial stake in Ironveld and is focused on ensuring near-term development of Ironveld's project for the benefit of all shareholders."

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