Update of Agreement with Wogen Resources Limited
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Update of Agreement with Wogen Resources Limited
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa is pleased to announce that, following the announcement on 20 March 2017 regarding a definitive Sales and Marketing Agreement with Wogen Resources Limited ("Wogen") (the "Agreement"), Bushveld Vametco Limited ("Bushveld Vametco") has agreed with Wogen to retire in full the US$3 million prepayment facility and to simultaneously increase the Vametco Alloys (Proprietary) Limited ("Vametco") working capital facility by same amount from US$6 million to US$9 million.
As previously announced, the US$3 million prepayment financing formed part of the acquisition funding for Bushveld Vametco's acquisition of the 78.8% interest in Strategic Minerals Corporation ("SMC") from Evraz Group S.A., which completed on 6 April 2017.
Whereas the Agreement provided for full repayment of the prepayment facility by the end of 2018, the Company has taken the decision to retire the facility much sooner and expand the working capital facility to ensure greater flexibility in the financing of product sold. Wogen will continue to market Vametco's NitrovanTM product globally on an exclusive basis, with the exception of Japan and Taiwan which are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in SMC.
Fortune Mojapelo, CEO of Bushveld, commented:
"The retirement of the prepayment facility at such an earlier point than initially anticipated is testament to the quality of Vametco's operations and the extent to which the vanadium market has strengthened in the past year. Wogen continues to be a supportive and beneficial partner and its increase in the working capital facility from US$6 to US$9 million we believe demonstrates their confidence in Bushveld Vametco's strategy and vision going forward.
"This is an exciting time for the company and I look forward to updating our shareholders with our progress in due course."
Further updates will be provided as appropriate.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited
Fortune Mojapelo +27 (0) 11 268 6555
Strand Hanson Limited (Nominated Adviser)
James Harris / Ritchie Balmer +44 (0) 20 7409 3494
Beaufort Securities (Joint broker)
Jon Bellis +44 (0) 20 7382 8300
SP Angel Corporate Finance (Joint broker)
Ewan Leggat +44 (0) 20 3470 0470
Blytheweigh (Public Relations)
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.
The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost 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 a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
Bushveld Minerals' 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 with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. 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
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