Bushveld raising $35m to fund refurbishment, debt repayment

Vanadium producer Bushveld Minerals announced on Monday that Orion Mine Finance has agreed, through its affiliate, to subscribe for up to the entire $35m of convertible loan notes under the instrument it announced on 30 September.

The AIM-traded firm said that as an adjustment to the instrument’s previously-announced terms, the conversion price was set at 17p, while all other terms remained unchanged.

Its proceeds would go towards the first phase of Vanchem's critical refurbishment programme and debt repayment.

The issue of the convertible loan notes remained conditional on completion of the $30m production financing agreement, also announced on 30th September.

Bushveld said it was progressing completion of the remaining conditions under the production financing agreement.

“We are pleased that Orion has once again shown strong support for the company and its growth story,” said chief executive officer Fortune Mojapelo.

“While we did receive widespread interest from other investors in the Instrument, Orion's willingness to upsize its investment in line with the terms of its existing commitment made them the natural investor for the entire $35m.

“Importantly, we have agreed a 17p conversion price with Orion, representing a premium of circa 39% to the Bushveld closing share price as at 6 November, to limit dilution to existing shareholders.”

At 1543 GMT, shares in Bushveld Minerals were up 1.47% at 12.43p.