Bushveld extends Wogen working capital facility

Diversified mineral development company Bushveld Minerals announced on Thursday that Bushveld Vametco had agreed to increase the working capital facility governed by the definitive sales and marketing agreement with Wogen Resources to $11m from $9m, with immediate effect.

The AIM-traded firm said the facility, which is an inventory and receivable financing, is in place to “optimise the operating position” of Vametco Alloys.

It said the term of the facility remained at five years from March 2017, renewable by mutual agreement, and were unchanged by the increase in the facility size.

Wogen said it would market the Nitrovan product globally on an exclusive basis over the term of the agreement, with the exception of Japan and Taiwan, which were covered exclusively by Sojitz Noble Alloys, the minority partner in Strategic Minerals Corporation.

“Both this and the earlier facility amendment as announced on 22 August 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,” said Bushveld Minerals CEO Fortune Mojapelo.