TIDMBMN
RNS Number : 4030Q
Bushveld Minerals Limited
27 October 2021
Market Abuse Regulation ("MAR") Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
27 October 2021
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Repayment of Duferco convertible loan note
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer and energy storage solutions provider
with ownership of high-grade assets in South Africa, is pleased to
announce the final terms for the repayment of the US$11.5 million
unsecured convertible loan notes held by Duferco Participations
Holding S.A. ("Duferco").
On 18 December 2020, the Company announced that the US$11.5
million remaining balance of the Duferco convertible notes was due
for payment on 8 November 2021. Further to the announcement on 21
October 2021 that progress has been made in negotiations with
Duferco regarding the remaining balance of US$11.5 million of the
convertible loan notes, the Company is pleased to announce that
agreement has now been reached to the effect that on 8 November
2021:
(i) Duferco will convert US$9 million of the principal
outstanding under the loan notes into new ordinary shares of
Bushveld; and
(ii) the Company will repay the balance of US$2.5 million,
together with accrued interest on the notes of approximately
US$0.512 million in cash, to Duferco.
The terms of conversion remain the same as previously announced
by the Company, being at a five per cent discount to the prevailing
10 day volume weighted average share price of ordinary shares of
Bushveld leading up to the date of conversion. There is no lock in
or orderly marketing period for the shares issued.
The Company has also agreed to pay, on Duferco's behalf, working
capital adjustment and deferred business completion payment amounts
owing to Duferco Vanadium Alloys Proprietary Limited and Duferco
Vanadium Proprietary Limited in terms of the Business and Share
Purchase Agreement entered into between Bushveld, Duferco and
others announced on 1 May 2019 in an aggregate amount of
approximately US$2.2 million payable in South African Rands
(ZAR32,006,496).
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"I am pleased that Duferco will convert US$9 million of the
principal outstanding under the loan notes into Bushveld Minerals
shares, which will reduce our debt position significantly while
also making a material reduction at the net debt level given that
most of the repayment will be made using Bushveld shares."
"This will be the final payment of our US$53.5m acquisition, two
years ago, of Vanchem, the remaining primary vanadium processing
plant in South Africa (and one of only four such operational plants
in the world). The acquisition structure, which comprised US$30.5m
in cash and US$23m in the form of a 2-year convertible loan,
allowed us to complete the important acquisition at a time, in
November 2019, of falling realised vanadium prices that went on to
average US$23/kgV in 2020. Yet, our conviction in the strategic
importance of this asset to the Company's quest to establish a
significant low cost vertically integrated vanadium platform
continues to grow, even as we progress the refurbishment plan to
raise Vanchem's production run rate levels to 2,600 mtV by the end
of 2022, in the process diversifying our vanadium product portfolio
while significantly improving Vanchem's cost position."
ENDS
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals Limited 6555
Fortune Mojapelo, Chief Executive
Officer
Andrew Mari, Investor Relations
Nominated Adviser +44 (0) 20 3470
SP Angel Corporate Finance LLP & Broker 0470
Richard Morrison / Charlie Bouverat
Grant Baker / Richard Parlons
+44 (0) 20 7418
Peel Hunt Limited Joint Broker 8900
Ross Allister / Alexander Allen
Tavistock Financial PR
Gareth Tredway / Tara Vivian-Neal/ +44 (0) 207 920
Adam Baynes 3150
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary
vanadium producer. It is one of only three operating primary
vanadium producers, owning 2 of the world's 4 operating primary
vanadium processing facilities. In 2020, the Company produced more
than 3,600 mtV, representing approximately three per cent of the
global vanadium market. With a diversified vanadium product
portfolio serving the needs of the steel, energy and chemical
sectors, the Company participates in the entire vanadium value
chain through its two main pillars: Bushveld Vanadium, which mines
and processes vanadium ore; and Bushveld Energy, an energy storage
solutions provider. Bushveld Vanadium is targeting to materially
grow its vanadium production and achieve an annualised steady state
production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a by
the end of 2022, from projects currently being implemented. Beyond
that, pre-feasibility studies are in progress to determine the
optimal path to increase production even further to a steady state
production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in
the medium-term and to a steady state production run rate of 8,400
mtVp.a in the long term.
Bushveld Energy is focused on developing and promoting the role
of vanadium in the growing global energy storage market through the
advancement of vanadium-based energy storage systems, specifically
Vanadium Redox Flow Batteries ("VRFBs").
Detailed information on the Company and progress to date can be
accessed on the website www.bushveldminerals.com
About Vametco
Vametco is located near Brits on the Western Limb of the
Bushveld Complex. The integrated operation comprises a vanadium ore
mine and a processing plant that produces mostly Nitrovan, a
trademark product sold in major steel markets across the world. The
mine lies adjacent to the Brits Vanadium Project, which will in
future serve as an alternative source of near surface run of mine
("ROM") ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods
to mine a well-defined orebody. The deposit is continuous with
limited faulting and dips in a northerly direction at approximately
19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing
circuit, followed by milling and magnetic separation to produce
magnetite concentrates. The magnetite concentrates are fed into the
extraction process which includes the kiln for roasting followed by
leaching and precipitation. Thereafter the precipitated vanadium as
ammonium metavanadate is converted to modified vanadium oxide
("MVO") in rotary calciners. MVO is fed into the mix plant and
finally into the shaft furnaces to produce Nitrovan.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni
Local Municipality, Mpumalanga Province in the Republic of South
Africa. Vanchem is a primary vanadium producing facility with a
beneficiation plant capable of producing various vanadium oxides,
ferrovanadium and vanadium chemicals. Vanchem uses the salt roast
beneficiation process, similar to the one used at Vametco. The
plant comprises: a core salt-roast processing plant, including 3
roasting kilns, an electric smelting ferrovanadium converter, an
alumino-thermic smelting facility, also located at Highveld, a
vanadium chemical plant; and a rail siding linking the plant with
Bushveld deposits and additional potential supply sources through
the national rail network.
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END
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