TIDMBMN
RNS Number : 6336Z
Bushveld Minerals Limited
18 December 2017
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.
18 December 2017
Bushveld Minerals Limited
("Bushveld" or the "Company")
Issuance of Second tranche of Convertible bonds
Bushveld Minerals Limited (AIM: BMN), a mineral project
development company with a portfolio of vanadium and coal assets in
Southern Africa and a minority investment in tin, is pleased to
announce that the Company has agreed to issue the second tranche of
GBP3.5 million ("Second Tranche") of unsecured convertible bonds to
UK based fund, Atlas Capital Markets Limited, and its New York
based joint venture company, Atlas Special Opportunities Limited
(collectively the "Investor").
Details of the Convertible Bond:
The Second Tranche was issued on the 18 December 2017, upon
receipt of funds by the Company. The First Tranche of of
GBP4,500,000 was issued on the 22 September 2017.
A total fundraising of up to GBP8.0 million through the creation
and issuance of convertible bonds, with denomination of GBP25,000
each, which bear a coupon of 7.5 per cent per annum and have a
maturity date of two years from the date of issuance (the "Maturity
Date") (the "Convertible Bonds"). The Convertible Bonds are issued
at 98 per cent of face value.
The Convertible Bonds are convertible into BMN ordinary shares
at a price equal to the average of the lowest five days volume
weighted average price (as published by Bloomberg) determined over
the ten trading days immediately prior to receipt of a conversion
notice by the Company from the Investor.
The Investor has agreed not to convert more than 25 per cent of
the Convertible Bonds outstanding during every period of three
calendar months: (i) from 1 January to 31 March; (ii) from 1 April
to 30 June; (iii) from 1 July to 30 September; and (iv) from 1
October to 31 December, subject to certain exceptions, and agrees
not to short sell and/or borrow BMN ordinary shares at any point
during the twenty-four month period from the date of issuance of
the First Tranche.
A total of 4,861,111 warrants over BMN ordinary shares will be
issued as part of the Second Tranche.
A total of 6,250,000 warrants over BMN ordinary shares were
issued as part of the First Tranche. The warrants have a three year
term, a strike price of 14.4p and are exercisable at any time.
The net proceeds receivable from the issue of the Second Tranche
will be applied to further developing the Company's vanadium
platforms, as well as providing general working capital.
The Company has the option to redeem the Convertible Bonds prior
to the Maturity Date at 105 per cent of the face value of the
outstanding Convertible Bonds to be redeemed. If a material change
of ownership (being the acquisition of ownership of, or voting
control or direction over, more than 50% of the issued and
outstanding shares of the Company) occurs, or certain events of
default occur, the Investor has the right to request redemption of
all or part of the outstanding amount at 105 per cent of the face
value of the outstanding Convertible Bonds to be redeemed.
On the Maturity Date, any unconverted Convertible Bonds will be
converted into BMN ordinary shares, with such number of ordinary
shares determined by dividing the principal amount of the
unconverted Convertible Bonds by the average of the lowest three
days volume weighted average price (as published by Bloomberg)
during the period of fifteen consecutive trading days prior to the
Maturity Date.
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief
Executive Officer
SP Angel Corporate Finance
LLP +44 (0) 20 3470 0470
Nominated Adviser & Broker
Ewan Leggat
Blytheweigh
Financial PR
Tim Blythe / Nick Elwes +44 (0) 207 138 3204
Gabriella von Ille +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM listed mineral project development
company with a portfolio of vanadium and coal assets in Southern
Africa and a minority investment in tin.
The Company's flagship vanadium platform includes an interest in
Bushveld Vametco Alloys (Pty) Ltd primary vanadium mining and
processing company, which the company has announced a conditional
acquisition of 100%; the Mokopane Vanadium Project and the Brits
Vanadium Project. The coal platform comprises the wholly-owned
Imaloto Coal Project, which is being developed as one of
Madagascar's leading independent power producers. The Company's tin
interests are held through its shareholding in AIM listed AfriTin
Mining Limited.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owned 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.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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