Bushveld Minerals Limited Update of Agreement with Wogen Resources Limited (6020O)
22 August 2017 - 4:01PM
UK Regulatory
TIDMBMN
RNS Number : 6020O
Bushveld Minerals Limited
22 August 2017
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 Nitrovan(TM)
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
The company news service from the London Stock Exchange
END
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