Bushveld Minerals Limited AfriTin Working Capital Support Financing - Update (3626J)
August 16 2019 - 7:30AM
UK Regulatory
TIDMBMN
RNS Number : 3626J
Bushveld Minerals Limited
16 August 2019
16 August 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
AfriTin Working Capital Support Financing - Update
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated
primary vanadium producer, with ownership of high grade vanadium
assets in South Africa, notes that AfriTin Mining Limited
("AfriTin") has today agreed a NAD 35,000,000 (approximately US$2.3
million) working capital facility with Nedbank Namibia ("Nedbank").
Bushveld holds approximately 8% of the total issued share capital
in AfriTin.
On 22 May 2019, the Company announced that it had agreed to
provide a short-term standby working capital support facility to
AfriTin for the amount of ZAR 30,000,000 (approximately US$2.1
million on 22 May 2019). AfriTin has subsequently secured a working
capital facility for the amount of NAD 35,000,000 from Nedbank
Namibia (the "Nedbank Facility"), with the support of Bushveld
Minerals providing to stand surety for the Nedbank Facility to the
value of NAD 30,000,000 (approximately US$2.0 million).
In the unlikely event of default, Nedbank will first call on the
suretyship of the parent company of the AfriTin Group (i.e. AfriTin
Mining Limited). In the event that AfriTin Mining Limited cannot
meets its obligations under the facility, Nedbank will call upon
the Bushveld Minerals suretyship.
The above is less onerous on Bushveld Minerals as it is not a
cash collateralised guarantee. In addition,
the terms agreed for the Working Capital Facility announced on
the 22 May 2019 remain unchanged with respect to Bushveld Minerals.
The Company is comfortable with the progress that AfriTin has made
towards production at its Namibian flagship project and with the
security it retains from AfriTin for the suretyship in the form of
a notarial bond over the AfriTin processing plant.
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance
LLP Nominated Adviser & Broker +44 (0) 20 3470 0470
Ewan Leggat / Richard Morrison
Jonathan Williams / Richard
Parlons
Alternative Resource Capital Joint Broker
Rob Collins +44 (0) 207 186 9001
Alex Wood +44 (0) 207 186 9004
BMO Capital Markets Limited Joint Broker +44 (0) 20 7236 1010
Jeffrey Couch / Tom Rider
Michael Rechsteiner / Neil
Elliot
Tavistock Financial PR
Charles Vivian / Gareth Tredway +44 (0) 207 920 3150
Brunswick Financial PR (South Africa)
Miyelani Shikwambana +27 (0) 11 502 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 solutions provider.
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.
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contact rns@lseg.com or visit www.rns.com.
END
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