Financing Update: Orion matched funding of US$10m

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Regulatory News | 28 Jun, 2024

Updated : 15:30

RNS Number : 4280U
Bushveld Minerals Limited
28 June 2024
 

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

 

Bushveld Minerals Limited

("Bushveld Minerals", "Bushveld", "Company", or the "Group")

Financing Update: Orion matched funding facility of US$10 million

Further to the Company's announcement and shareholder circular dated 13 May 2023, Bushveld Minerals Limited (AIM: BMN), the primary vanadium producer, is pleased to announce that it has entered into revised agreements with OMF Fund III (F) Limited ("Orion"), pursuant to which Orion has agreed to provide further funding to the Group by matching the additional funds paid by Southern Point Resources Fund I S.A. LP ("SPR") on a $ for $ basis up to a maximum of US$10 million by amending the terms of the agreements entered into for the convertible loan note refinancing announced on 1 February 2024.

Highlights

·     Orion to invest up to US$10 million in cash.

·     Orion funding will match additional funds paid by SPR on a $ for $ basis, including any monies received since 03 May 2024.

·     First repayment of the Orion term loan deferred from 30 June 2024 until 31 December 2025.

·      All consents have now been received to enable the SPR arrangements (as described in the Company announcement on 07 May 2024) to complete, including further drawdowns on tranche two and three of the additional working capital facility.

·      Company anticipates it will publish its annual report and accounts for year ended 31 December 2023 later today.


Key Terms of the Refinancing

Bushveld Minerals and Orion have agreed the following changes to the term loan:

·      Interest payments to be capitalised until the first repayment date.

·      The first repayment date to be 31 December 2025 (previously 30 June 2024)

·      Repayments (principal and interest) to be made in 16 equal quarterly amounts thereafter.

 

Bushveld Minerals and Orion have also agreed to increase the supplementary royalty (as announced on 01 February 2024) on a pro-rata basis according to the proportion of the full US$10M drawn. For the duration of the term loan, the royalty payment rate shall be:

·      Between 0.264% and 0.5% with a realised vanadium price per kgV of less than US$47/kgV; or

·      Between 0.216% and 0.405% with a realised vanadium price per kgV of greater than US$47/kgV.

Following the later of 30 June 2027 or the full repayment of the loan, the royalty payment rates described above will reduce by 50% (from 80%) for the life of the Vametco operation.


Other Conditions

·  Bushveld is required to provide additional Vametco security on the supplementary royalty, which may require separate SARB approval.

·  Orion will be entitled to nominate a director for appointment to the Bushveld Minerals Board, or alternatively, a board observer.

·  Furthermore, a committee has been established to monitor and review agreed operational targets and key performance indicators. The committee will be advisory in nature, and its members include three Orion representatives and three Bushveld representatives.

 

Craig Coltman CEO of Bushveld Minerals commented:

"I am extremely grateful for the continued support of our shareholders and lenders during challenging circumstances. The amended agreements represent a key milestone in the sale of the Vanchem asset and provide much-needed working capital for the continuation of production at the Company's operations."

 

 

Enquiries :  info@Bushveldminerals.com

 

Bushveld Minerals Limited


+27 (0) 11 268 6555

Craig Coltman, Chief Executive Officer









SP Angel Corporate Finance LLP

Nominated Adviser & Joint Broker

+44 (0) 20 3470 0470

Richard Morrison / Charlie Bouverat

 


Grant Barker / Abigail Wayne

 



 


Hannam & Partners

Joint Broker

+44 (0) 20 7907 8500

Andrew Chubb / Matt Hasson / Jay Ashfield

 



 


Tavistock

Financial PR

+44 (0) 207 920 3150

Gareth Tredway / Tara Vivian-Neal / James Whitaker



 

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a vertically integrated primary vanadium producer, it is one of only three operating primary vanadium producers. In 2022, the Company produced more than 3,800 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.

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com

 

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