SPR Funding & Orion 2024 Financing Package Update
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
24 June 2024
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Update on SPR Funding & Orion 2024 Financing Package
Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer, hereby provides an update on the status of the outstanding conditions to enable it to drawdown on the additional funding from Southern Point Resources Fund I S.A. LP ("SPR") and to complete the Orion 2024 Financing Package (as detailed in the Company's circular dated 13 May 2024).
Following shareholder approval of the Vanchem Disposal on 31 May 2024, the Company has to date received US$3.5 million from SPR, in advance of all the outstanding conditions being satisfied, to reduce long outstanding creditors balance. The balance of the second tranche, being a further US$1.5 million, was expected to flow shortly thereafter. However, the concluding of the agreements and obtaining the required consents from Orion has taken longer than expected. Whilst this delay in the receipt of funds was initially manageable, the Company now finds itself in a position whereby Vanchem is unable to secure adequate ore and raw materials to continue operating at unconstrained production levels. Consequently, should the funding not be forthcoming within the next 2 days, a controlled production ramp down will commence during the course of the week, the length of which will be determined by the timing of the receipt of further funds. Furthermore, sustainable production at Vametco is currently being impacted due to its inability to procure critical spares. The Company, SPR and Orion continue to actively engage to ensure that the required agreements and consents are executed as quickly as possible.
The Company has prepared its accounts, which are ready to release before 30 June, on the assumption that the SPR and Orion agreements are concluded in the coming days. In the event that the SPR and Orion agreements are not concluded in time, there would be material changes to the Company's accounts. In such circumstances, the Company would not be able to publish its accounts within six months of the end of the financial year to which they relate (i.e. December 2023), and trading in the Company's shares on AIM would be suspended on 01 July 2024.
Vanchem Disposal - Competition Tribunal Approval
As a result of the amended terms of the Vanchem Disposal, the initial application for the disposal of 50% acquisition of Vanchem to SPR had to be withdrawn and a new application was required. This application was lodged by SPR with the Competition authorities on 21 June 2024. The Company will advise the market as to the updated timing of receipt of the Competition Tribunal's approval in due course.
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 / Richard Parlons |
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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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