REG - Bushveld Minerals Ld - Default on Shareholder Loan Repayment by Vanchem

Bushveld MineralsAnnouncement

29/11/2024 07:00

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RNS Number : 1017O  Bushveld Minerals Limited  29 November 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

29 November 2024

Bushveld Minerals Limited

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

Default in repayment of shareholder loan amount owing by Vanchem

 

Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium
producer, announces that its group company and former shareholder of Bushveld
Vanchem (Pty) Limited ("Vanchem"), Bushveld Vanadium 2 (Pty) Limited ("BV2")
has not received an amount of ZAR 14,438,093 (c.US$798,000) less accrued
interest, which was due, owing and payable by Vanchem to BV2  by 21 November
2024 (within 14 days of the effective date of Vanchem sale transaction,
namely, 7 November 2024), as part-repayment of a shareholder loan balance
(plus accrued interest at a rate of 15% per annum and less certain expenses).

The balance of the shareholder loan amount is due in December 2024.

The above payment amount factors in that, on completion of the Vanchem
disposal, an amount of ZAR35 million (c.US$1.9 million) was deemed to have
already been repaid by Southern Point Resources Fund I S.A. LP ("SPR") owing
to kiln repairs that caused the incurrence of unexpected costs associated with
the repairs and a period of non-production ("the Estimated Kiln Damages").

The Company disputes the quantum of the ZAR35 million claim, but it has
agreed, together with SPR, that an independent expert will be appointed to
determine the actual damages. That process has not yet commenced, but once
finalised, any difference between the Estimated Kiln Damages and the actual
amount will be factored into the deferred consideration still due (i.e., added
to the deferred consideration if the actual amount is less than the estimate,
or deducted from the deferred consideration if the actual amount is higher
than the estimated amount).

Upon receipt, BV2 will utilise the funds as part-payment of an intercompany
loan balance owing by BV2 to Bushveld Vametco Alloys (Pty) Limited ("BVA").

Further to the announcement on 19 November 2024, the Company's
nominees, Piers Marsden and Jenna Osborne of Matuson &  Associates,
have now been appointed as the joint business rescue practitioners of BVA,
Bushveld Vametco Holdings (Pty) Limited and Bushveld Minerals SA (Pty) Limited
("the Joint BRPs").

Accordingly, the Joint BRPs are currently in discussions with Vanchem and will
determine the next steps, including taking legal advice, to recover the amount
currently owed by Vanchem to BV2, as outlined above.

Further announcements will be made in due course, as appropriate.

Enquiries :  info@Bushveldminerals.com (mailto: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

ENDS

 

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a primary vanadium producer. It is one of the world's
three primary vanadium producers, offering compelling exposure to vanadium
through its upstream asset.

Detailed information on the Company and progress to date can be accessed on
the website www.bushveldminerals.com (https://www.bushveldminerals.com/) .

 

 

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