Bushveld Minerals Limited R375 million Debt Facilities Secured (6776R)
October 30 2019 - 10:51AM
UK Regulatory
TIDMBMN
RNS Number : 6776R
Bushveld Minerals Limited
30 October 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.
30 October 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
R375 million Debt Facilities Secured
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer, with ownership of high grade vanadium
assets in South Africa, is pleased to announce that it has secured
R375 million (approximately US$25 million) in debt facilities
through its subsidiary Bushveld Vametco Alloys Proprietary Limited
("the Borrower") with Nedbank Limited (acting through its Nedbank
Corporate and Investment Banking division), a South African based
financial institution, in the form of a R250 million loan and a
R125 million revolving credit facility.
-- Key highlights of the R250 million loan:
o Five-year amortising loan;
o Interest rate calculated using the three year or six months
JIBAR(1) as selected by the Company plus a 3.4% margin;
o Interest payments are due semi-annually with first payment due
in six months from financial close;
o Principal repayments will be made semi-annually in arrears
over four years in eight equal instalments, with first payment due
18 months after financial close.
-- Key highlights of the R125 million revolving credit facility:
o Three-year term;
o Interest rate calculated using the three year or six months
JIBAR(1) as selected by the Company plus a 3.6% margin;
o Interest payments are due semi-annually with first payment due
in six months from financial close.
-- The security provided is customary for a secured financing of
this nature, including cession of shares in the Borrower, security
over the assets of the Borrower, and a parent guarantee.
-- Both facilities are subject to market related arranging and commitment fees.
1 The three month and six-month JIBAR as at 24 October 2019 is 6.78% and 7.23% respectively.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"We are pleased to announce the successful conclusion of the
debt facility discussions. The funding provides additional
flexibility for our business as we advance strategic initiatives at
Bushveld Vanadium and Bushveld Energy.
The Company is committed to maintaining a conservative balance
sheet and believes shareholders will benefit from the improved
capital structure."
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
Abigail Wayne / Richard Parlons
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Jeffrey Couch / Tom Rider
Michael Rechsteiner / Neil
Elliot
+44 (0) 20 7418
Peel Hunt LLP Joint Broker 8900
Ross Allister/ James Bavister
David McKeown
+44 (0) 20 7920
Tavistock Financial PR 3150
Charles Vivian / Gareth Tredway
Financial PR (South +27 (0) 11 502
Brunswick Africa) 7300
Miyelani Shikwambana
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, may be
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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contact rns@lseg.com or visit www.rns.com.
END
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