Financing Update: Orion matched funding of US$10m
![](https://tracker.live.rns-distribution.com/track.live-rns/5245296_d9353a075fe0b610698e373da828b7e4.png)
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 : [email protected]
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
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.