TIDMBMN
RNS Number : 5904E
Bushveld Minerals Limited
09 November 2020
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.
9 November 2020
Bushveld Minerals Limited
("Bushveld Minerals", "Bushveld" or the "Company")
Successful Raise of US$35 million Convertible Loan Note
Instrument with Orion Mine Finance
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer and energy storage provider, with
ownership of high-grade assets in South Africa, is pleased to
announce that, pursuant to an agreement of 6 November 2020,
amending the investment agreement between Bushveld and Orion Mine
Finance (" Orion ") and the related convertible loan note
instrument (the " Instrument ") first announced on 30(th) September
2020, Orion has agreed, through an affiliate of Orion, to subscribe
for up to the entire US$35 million of convertible loan notes under
the Instrument.
As an adjustment to the previously announced terms of the
Instrument, the conversion price of the convertible loan notes has
been set at 17 pence. All other terms remain unchanged. The terms
of the transaction are summarised below. The proceeds from the
issue of the convertible loan notes will go towards the first phase
of Vanchem' s critical refurbishment programme and debt
repayment.
The issue of the convertible loan notes is conditional, inter
alia, on completion of the US$30 million Production Financing
Agreement ("PFA"), also announced on 30(th) September 2020. The
Company continues to progress completion of the remaining
conditions precedent under the US$30 million PFA.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"We are pleased that Orion has once again shown strong support
for the Company and its growth story. While we did receive
widespread interest from other investors in the Instrument, Orion's
willingness to upsize its investment in line with the terms of its
existing commitment made them the natural investor for the entire
US$35 million. We welcome this vote of confidence in Bushveld.
Importantly, we have agreed a 17 pence conversion price with Orion,
representing a premium of circa 39% to the Bushveld closing share
price as at 6 November 2020, to limit dilution to existing
shareholders."
Details of the transaction:
Bushveld intends to serve 15 business days' notice on Orion to
subscribe at any time after the date of satisfaction of the
conditions precedent of the PFA up to 30 November 2020. Bushveld
can draw a minimum of US$10 million and a maximum of US$35
million.
Financing terms of the Instrument and convertible loan notes
-- A fixed 10 per cent per annum coupon with a three year
maturity date from the drawdown date.
-- All interest will accrue and be capitalised on a quarterly
basis in arrears but compounded annually.
-- Accumulated capitalised and accrued interest is convertible
into Bushveld ordinary shares. All interest and principal, to the
extent not converted into ordinary shares, is due and payable at
maturity date.
-- Funds raised are to be used for capital investment purposes
for the first phase of Vanchem's critical refurbishment programme,
and the balance for debt repayment purposes.
Drawdown
-- Bushveld can serve 15 business days' notice to Orion drawdown
in one tranche only, for a minimum of US$10 million and a maximum
of US$35 million, at any time from the date of satisfaction of the
conditions until 30 November 2020.
-- The issuance of convertible loan notes is conditional, inter
alia, on completion of the PFA.
Conversion feature
-- Between drawdown and the Instrument's maturity date Orion
may, at their option, convert an amount of the outstanding debt,
including capitalised and accrued interest, into Bushveld ordinary
shares as follows:
- First six months: Up to one third of the outstanding amount;
- Second six months: Up to two thirds of the outstanding amount
(less any amount previously converted);
- From the anniversary of drawdown until the maturity date: the
outstanding amount under the Instrument may be converted;
- Bushveld also has the option to convert all, but not some, of
the amount outstanding under the Instrument, if its volume weighted
average share price is more than 200 per cent of the conversion
price over a continuous 15 trading day period, a trading day being
a day on which the AIM market is open for the trading of
securities.
-- At any time until the convertible maturity date, Orion may
convert the debt as above mentioned into an amount of ordinary
shares equal to the total amount available for conversion under the
Instrument divided by the conversion price of 17 pence.
General Meeting
A general meeting of shareholders has been convened for 10 a.m.
on 27 November 2020 at Oak House, Hirzel Street, St. Peter Port,
Guernsey GY1 3RH to approve, amongst other matters, the necessary
additional authorities to issue the maximum amount of shares
arising on conversion. A further announcement in this regard was
made today.
For further details on the terms of the PFA, Instrument and
convertible loan notes refer to the Bushveld Minerals announcement
on 30(th) September 2020.
S
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals Limited 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
Richard Morrison / Charlie
Bouverat
Abigail Wayne / Richard Parlons
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Tom Rider / Michael Rechsteiner
/
Neil Elliot
+44 (0) 20 7418
Peel Hunt Limited Joint Broker 8900
Ross Allister / Alexander
Allen
Tavistock Financial PR
Charles Vivian / Gareth Tredway
/ +44 (0) 207 920
Edward Lee 3150
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; 100 per cent of
Bushveld Vanchem, a primary vanadium processing facility with a
beneficiation plant; 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. 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.
Bushveld Energy, the Company's energy storage solutions provider,
plays a leading role in the development and promotion of the role
of vanadium in this market.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they 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 .
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 mostly Nitrovan , 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 mix plant and
finally into the shaft furnaces to produce Nitrovan.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni
Local Municipality, Mpumalanga Province in the Republic of South
Africa. Vanchem is a primary vanadium producing facility with a
beneficiation plant capable of producing various vanadium oxides,
ferrovanadium and vanadium chemicals. Vanchem uses the salt roast
beneficiation process, similar to the one used at Vametco. The
plant comprises: a core salt-roast processing plant, including 3
roasting kilns, an electric smelting ferrovanadium converter, an
alumino-thermic smelting facility, also located at Highveld, a
vanadium chemical plant; and a rail siding linking the plant with
Bushveld deposits and additional potential supply sources through
the national rail network.
About Orion
Orion is a global alternative investment management firm with
approximately US$6.2 billion under management (as of 3/31/2020).
Orion specializes in institutional metals and mining investment
strategies in the industrial and precious metals space. Orion's
private equity, hedge fund, and merchant service divisions enable
us to access in-depth knowledge of the global metals and mining
supply chain and robust insight into the physical and financial
demand driving global metals prices.
For more information visit www.orionresourcepartners.com .
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCUPGPUGUPUPUR
(END) Dow Jones Newswires
November 09, 2020 02:00 ET (07:00 GMT)
Bushveld Minerals (AQSE:BMN.GB)
Historical Stock Chart
From May 2024 to Jun 2024
Bushveld Minerals (AQSE:BMN.GB)
Historical Stock Chart
From Jun 2023 to Jun 2024