Bushveld Minerals Limited Further Update of Agreement with Wogen Resources (8688O)
24 August 2017 - 4:01PM
UK Regulatory
TIDMBMN
RNS Number : 8688O
Bushveld Minerals Limited
24 August 2017
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Further 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, announces that,
further to the Company's announcement on 22 August 2017, Bushveld
Vametco Limited ("Bushveld Vametco") has agreed to increase the
working capital facility (the "Facility") governed by the
definitive Sales and Marketing Agreement with Wogen Resources
Limited ("Wogen") (the "Agreement") from US$9 million to US$11
million with immediate effect.
The Facility, which is an inventory and receivable financing, is
in place to optimise the operating position of Vametco Alloys
Limited ("Vametco Alloys"). The term of the Facility remains at
five years from March 2017, renewable by mutual agreement, and are
unchanged by the increase in the Facility size. Wogen will market
the Nitrovan(TM) product globally on an exclusive basis over the
term of the Agreement, with the exception of Japan and Taiwan which
markets are covered exclusively by Sojitz Noble Alloys Corporation,
the minority partner in Strategic Minerals Corporation.
Further updates will be provided as appropriate.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the
Wogen Agreement amendment,
"Both this and the earlier facility amendment (as announced on
22 August 2017) relieves Bushveld Vametco's operations from the
fixed debt commitment of the (now retired) prepayment facility and
avails of additional cash resources backed by inventory shipments
in a rising vanadium market."
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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