Default on Shareholder Loan Repayment by Vanchem
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
29 November 2024
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Default in repayment of shareholder loan amount owing by Vanchem
Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer, announces that its group company and former shareholder of Bushveld Vanchem (Pty) Limited ("Vanchem"), Bushveld Vanadium 2 (Pty) Limited ("BV2") has not received an amount of ZAR 14,438,093 (c.US$798,000) less accrued interest, which was due, owing and payable by Vanchem to BV2 by 21 November 2024 (within 14 days of the effective date of Vanchem sale transaction, namely, 7 November 2024), as part-repayment of a shareholder loan balance (plus accrued interest at a rate of 15% per annum and less certain expenses).
The balance of the shareholder loan amount is due in December 2024.
The above payment amount factors in that, on completion of the Vanchem disposal, an amount of ZAR35 million (c.US$1.9 million) was deemed to have already been repaid by Southern Point Resources Fund I S.A. LP ("SPR") owing to kiln repairs that caused the incurrence of unexpected costs associated with the repairs and a period of non-production ("the Estimated Kiln Damages").
The Company disputes the quantum of the ZAR35 million claim, but it has agreed, together with SPR, that an independent expert will be appointed to determine the actual damages. That process has not yet commenced, but once finalised, any difference between the Estimated Kiln Damages and the actual amount will be factored into the deferred consideration still due (i.e., added to the deferred consideration if the actual amount is less than the estimate, or deducted from the deferred consideration if the actual amount is higher than the estimated amount).
Upon receipt, BV2 will utilise the funds as part-payment of an intercompany loan balance owing by BV2 to Bushveld Vametco Alloys (Pty) Limited ("BVA").
Further to the announcement on 19 November 2024, the Company's nominees, Piers Marsden and Jenna Osborne of Matuson & Associates, have now been appointed as the joint business rescue practitioners of BVA, Bushveld Vametco Holdings (Pty) Limited and Bushveld Minerals SA (Pty) Limited ("the Joint BRPs").
Accordingly, the Joint BRPs are currently in discussions with Vanchem and will determine the next steps, including taking legal advice, to recover the amount currently owed by Vanchem to BV2, as outlined above.
Further announcements will be made in due course, as appropriate.
Enquiries : info@Bushveldminerals.com
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Bushveld Minerals Limited |
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+27 (0) 11 268 6555 |
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Craig Coltman, Chief Executive Officer |
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SP Angel Corporate Finance LLP |
Nominated Adviser & Joint Broker |
+44 (0) 20 3470 0470 |
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Richard Morrison / Charlie Bouverat |
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Grant Barker / Abigail Wayne |
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Hannam & Partners |
Joint Broker |
+44 (0) 20 7907 8500 |
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Andrew Chubb / Matt Hasson / Jay Ashfield |
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Tavistock |
Financial PR |
+44 (0) 207 920 3150 |
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Gareth Tredway / Tara Vivian-Neal / James Whitaker |
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ENDS
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a primary vanadium producer. It is one of the world's three primary vanadium producers, offering compelling exposure to vanadium through its upstream asset.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com.
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