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
Bushveld Minerals
Limited
("Bushveld Minerals",
"Bushveld", "Company", or the "Group")
Financing Update: Orion
matched funding facility of US$10 million
Further to the Company's
announcement and shareholder circular dated 13 May 2023, Bushveld
Minerals Limited (AIM: BMN), the primary
vanadium producer, is pleased to
announce that it has entered into revised agreements with OMF Fund
III (F) Limited ("Orion"), pursuant to which Orion has agreed to
provide further funding to the Group by matching the additional
funds paid by Southern Point Resources Fund I S.A. LP ("SPR") on a
$ for $ basis up to a maximum of US$10 million by amending the
terms of the agreements entered into for the convertible loan note
refinancing announced on 1 February 2024.
Highlights
·
Orion to invest up to US$10 million in
cash.
·
Orion funding will match additional funds paid by
SPR on a $ for $ basis, including any monies received since 03 May
2024.
·
First repayment of the Orion term loan deferred
from 30 June 2024 until 31 December 2025.
· All
consents have now been received to enable the SPR arrangements (as
described in the Company announcement on 07 May 2024) to complete,
including further drawdowns on tranche two and three of the
additional working capital facility.
· Company anticipates it will publish its annual report and
accounts for year ended 31 December 2023 later today.
Key
Terms of the Refinancing
Bushveld Minerals and Orion have
agreed the following changes to the term loan:
· Interest payments to be capitalised until the first repayment
date.
· The
first repayment date to be 31 December 2025 (previously 30 June
2024)
· Repayments (principal and interest) to be made in 16 equal
quarterly amounts thereafter.
Bushveld Minerals and Orion have
also agreed to increase the supplementary royalty (as announced on
01 February 2024) on a pro-rata basis according to the proportion
of the full US$10M drawn. For the duration of the term loan, the
royalty payment rate shall be:
· Between 0.264% and 0.5% with a realised vanadium price per kgV
of less than US$47/kgV; or
· Between 0.216% and 0.405% with a realised vanadium price per
kgV of greater than US$47/kgV.
Following the later of 30 June 2027
or the full repayment of the loan, the royalty payment rates
described above will reduce by 50% (from 80%) for the life of the
Vametco operation.
Other Conditions
· Bushveld is required to provide additional Vametco security on
the supplementary royalty, which may require separate SARB
approval.
· Orion will be entitled to nominate a director for appointment
to the Bushveld Minerals Board, or alternatively, a board
observer.
· Furthermore, a committee has been established to monitor and
review agreed operational targets and key performance indicators.
The committee will be advisory in nature, and its members include
three Orion representatives and three Bushveld
representatives.
Craig Coltman CEO of Bushveld Minerals
commented:
"I
am extremely grateful for the continued support of our shareholders
and lenders during challenging circumstances. The amended
agreements represent a key milestone in the sale of the Vanchem
asset and provide much-needed working capital for the continuation
of production at the Company's operations."
Enquiries : info@Bushveldminerals.com
Bushveld Minerals Limited
|
|
+27 (0) 11
268 6555
|
Craig Coltman, Chief Executive Officer
|
|
|
|
|
|
|
|
|
SP
Angel Corporate Finance LLP
|
Nominated Adviser & Joint Broker
|
+44 (0) 20
3470 0470
|
Richard Morrison / Charlie
Bouverat
|
|
|
Grant Barker / Abigail
Wayne
|
|
|
|
|
|
Hannam & Partners
|
Joint Broker
|
+44 (0) 20
7907 8500
|
Andrew Chubb / Matt
Hasson / Jay Ashfield
|
|
|
|
|
|
Tavistock
|
Financial PR
|
+44 (0)
207 920 3150
|
Gareth Tredway / Tara
Vivian-Neal / James Whitaker
|
|
|
ABOUT BUSHVELD MINERALS
LIMITED
Bushveld Minerals is a vertically
integrated primary vanadium producer, it is one of only three
operating primary vanadium producers. In 2022, the Company produced
more than 3,800 mtV, representing approximately three per cent of
the global vanadium market. With a diversified vanadium product
portfolio serving the needs of the steel, energy and chemical
sectors.
Detailed information on the Company
and progress to date can be accessed on the
website www.bushveldminerals.com