Sale of Darwin facility and Private Placement

RNS Number : 2376V
Bushveld Minerals Limited
24 October 2014
 



24 October 2014

 

 

Bushveld Minerals Ltd

 

("Bushveld" or the "Company")

 

 

Sale of the Darwin facility and

Private Placement to raise £1.25 million

 

Bushveld Minerals Limited (AIM: BMN), a mineral development company with a portfolio of vanadium and titanium-bearing iron ore and tin ore assets in Southern Africa, is pleased to announce that on Thursday 23 October the Company agreed to the sale of the balance of the outstanding facility with Darwin Strategic Limited ("Darwin"), which was originally entered into on 25 March 2014.

 

The outstanding facility, comprising of 25 million shares already in issue, was acquired in its entirety by Riverridge Limited at 3p per share, representing a 9% premium to the opening mid-market price. Darwin originally subscribed for 50 million ordinary shares of one penny each ("Subscription Shares") on terms outlined in its announcement of 25 March 2014.

 

Bushveld is also pleased to announce that it has placed a further 16.67 million new ordinary shares through Fox-Davies Capital, at a price of 3p per share, with one existing institutional investor.

 

Combined these transactions will raise gross proceeds of GBP1.25 million and simultaneously reapportion existing Bushveld Minerals shares from the Darwin Facility. The proceeds will principally be used to support the commencement of the Feasibility Study for its world-class Vanadium Project and to fund the Company's operational costs. Efforts to engage potential strategic partnerships for the Company's other platforms are continuing, with interest being shown across all assets in the portfolio

 

Application will be made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM from 8.00am on 30 October 2014 ("Admission"). Following Admission, there will be a total of 479,670,771 ordinary shares in issue. For the purposes of calculating Total Voting Rights shareholders may use this number as the total number of shares in issue from the date of Admission.

 

Fortune Mojapelo, CEO of Bushveld Minerals commented:

 

"The Darwin facility announced in December 2013 was an innovative funding mechanism that allowed the Company to place shares at its discretion into the market over a period during which it could benefit from a rising share price. However, several factors, including adverse conditions in the market, constrained the Company in fulfilling this objective. Accordingly, the Company decided to liquidate the entire Darwin structure. We couldn't be more pleased that this has been done with the support of long-term investors/shareholders of Bushveld at an important time in the development of its projects

 

Having launched the Bushveld Vanadium Project platform almost one year ago, and more recently completed a compelling Scoping Study, we are pleased to further the funding of its feasibility study with the proceeds announced today."

 

 

Contact

For further information on Bushveld please visit http://www.bushveldminerals.com or contact the persons listed below.

Kindly note that a revamped Bushveld website will be launched Monday 27 October 2014.

 

Bushveld Minerals

Fortune Mojapelo

+27 (0) 11 268 6555

Strand Hanson Limited

Andrew Emmott / James Harris

Warren Pearce / Scott McGregor

 

+44 (0) 20 7409 3494

+27 (0) 87 828 0407

Fox Davies

Jonathan Evans

+44 (0) 20 3463 5000

RFC Ambrian

Jonathan Williams

+44 (0) 20 3440 6800

Tavistock Communications

Jos Simson/ Nuala Gallagher

+44 (0) 20 7920 3150

Tielle Communications

Stéphanie Leclercq

+27 (0) 83 307 7587

- ENDS -

Notes to the editor

Bushveld Minerals Limited is a mineral development company with a portfolio of vanadium-and titanium bearing iron ore and tin assets in Southern Africa. The Company owns the Bushveld Vanadium Project and Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 57.21% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

Bushveld was admitted to the AIM Market of the London Stock Exchange in March 2012.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCKZLBLZBFZFBD
UK 100

Latest directors dealings