TIDMBMN
RNS Number : 8184Z
Bushveld Minerals Limited
22 May 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
22 May 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
AfriTin Standby Working Capital Support Financing
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated
primary vanadium producer, with ownership of high grade vanadium
assets in South Africa announces that it has agreed to provide a
short-term standby working capital support facility to AfriTin
Mining Limited ("AfriTin") to the sum of ZAR30,000,000
(approximately US$2.1 million) ("Standby Facility"). Bushveld
Minerals spun-off its non-core tin business in 2017 to create
AfriTin and currently holds 9.5 per cent of the issued capital of
AfriTin as available for sale.
The 12-months facility is meant to fund AfriTin's working
capital requirements leading to expected tin mine commissioning
this year, and subsequent longer-term refinancing. The Standby
Facility is secured against a general notarial bond over the
AfriTin's processing plant at Uis project.
The Facility may only be drawn down by AfriTin subject to the
following conditions:
-- AfriTin can reasonably demonstrate to the Company that it
anticipates the generation of revenues which will enable it to
repay the amount drawn down in full.
-- AfriTin furnishes the Company with evidence it has
succesfully completed an equity fundraising by way of a direct
subscription of 99,613,074 ordinary shares at a price of 3 pence
per share to raise approximately GBP3 million;
-- Bushveld Minerals is satisfied that AfriTin has utilised the
funding available to it under the equity fundraise and that
AfriTin's other available cash resources have been utilised in
full;
-- Bushveld Minerals is satisfied that ATM does not have
positive cash flow (determined in accordance with the same
accounting principles applied by AfriTin during the 6 months prior
to the Signature Date);
-- The Standby Facility shall be used by AfriTin exclusively for
the reconfiguration of the installed pilot plant tin production
circuit at its Uis tin project in accordance with the Bushveld
Minerals reviewed technical plans to commision a mine at Uis
project.
Interest on the Standby Facility accrues at a rate of 12.5 per
cent per annum (payable quarterly) on drawn amounts, and a facility
fee equal to 1.0 per cent of the facility amount. The Standby
Facility is repayable at any time during the 12 months term at no
additional cost to AfriTin. The facility is issued at arms length
terms.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
"While we remain committed to our Board's decision to see AfriTin
exist and operate as an independent company, we saw it appropriate
to provide much needed once-off standby funding for the company's
work towards imminent mine commissioning. On the basis of our due
diligence conducted on the tin project, Bushveld is confident of
risk mitigation measures put in place to protect the Company from
exposure to events of default.
Furthermore, the funding support provided gives AfriTin the
needed time to finalise its own longer-term debt financing on the
back of anticipated tin production at Uis project later this year.
The support provided therefore enables Bushveld Minerals to secure
value in its remaining shareholding in the company and thereby
facilitate for the eventual final exit from the tin business by the
end of the facility term."
ENDS
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance Nominated Adviser +44 (0) 20 3470
LLP & Broker 0470
Ewan Leggat / Richard Morrison
Jonathan Williams / Richard
Parlons
Alternative Resource Capital Joint Broker
+44 (0) 207 186
Rob Collins 9001
+44 (0) 207 186
Alex Wood 9004
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Jeffrey Couch / Tom Rider
Michael Rechsteiner / Neil
Elliot
Tavistock Financial PR
+44 (0) 207 920
Charles Vivian / Gareth Tredway 3150
Brunswick Financial PR (South
Africa)
+27 (0) 11 502
Miyelani Shikwambana 7300
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium
producer, with ownership of high grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent
controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a
primary vanadium mining and processing company; the Mokopane
Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owning high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage project developer and
component manufacturer. Whilst the demand for vanadium remains
largely anchored in the steel industry, Bushveld Minerals believes
there is strong potential for an imminent and significant global
vanadium demand surge from the fast-growing energy storage market,
particularly through the use and adoption of Vanadium Redox Flow
Batteries.
While the Company's focus is on vanadium operations and the
development and promotion of VRFBs, it has additional investments
in coal, power and tin.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website www.bushveldminerals.com.
About Vametco
Vametco is located near Brits on the Western Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces Nitrovan(TM) , a
trademark product sold in major steel markets across the world. The
mine lies adjacent to the Brits Vanadium Project, which will in
future serve as an alternative source of near surface run of mine
(ROM) ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrates are fed into the
extraction process which includes the kiln for roasting followed by
leaching and precipitation. Thereafter the precipitated vanadium as
ammonium metavanadate is converted to modified vanadium oxide
("MVO") in rotary calciners. MVO is fed into the mixplant and
finally into the shaft furnaces to produce Nitrovan(TM) .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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