REG - Bushveld Minerals Ld - Definitive sales and marketing agreement with SPR

Bushveld MineralsAnnouncement

15/12/2023 08:00

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RNS Number : 9685W  Bushveld Minerals Limited  15 December 2023

Market Abuse Regulation ("MAR") Disclosure

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

15 December 2023

Bushveld Minerals Limited

("Bushveld" or the "Company")

Definitive sales and marketing agreement signed with Southern Point Resources

 

Further to the Company's announcement on 11 September 2023, Bushveld Minerals
Limited (AIM: BMN), the integrated primary vanadium producer, is pleased to
announce it has entered into a definitive sales and marketing agreement with
Southern Point Resources - Fund 1 SA L.P., represented by its general partner
SPR GP1 Proprietary Limited, ("SPRF").

 

Highlights

§ SPRF will carry out all marketing and sales of Vanadium product, produced
at both the Vametco and Vanchem plants on an exclusive basis and, subject to
the consent of Bushveld's joint venture partner in BELCO, in relation to
electrolyte.

§ SPRF will provide Bushveld with a provisional working capital facility of
US$25-30 million, to replace the existing working capital facilities.

·      Payable to Vametco and Vanchem on the basis of 85% of the
potential sales value on an M -1 basis.

§ Marketing fee: 3.75% of the total revenue, 5% on achieved sales above
US$40/kgV (the "trigger price"), for V(2)O(5) Flake the equivalent trigger
price would be US$9/lb V(2)O(5) and for Chemical products US$9/lb V(2)O(5)
plus the price premium achieved for chemical products above the V(2)O(5) Flake
price.

·      The total Marketing fee shall not exceed 5% of the gross realised
price for any such sale of finished product.

§ Three-year term from termination of the existing marketing and sales
agreement is extendable by a further three years at SPRF's discretion.

§ SPRF marketing and sales arrangement will replace existing marketing and
sales arrangements as and when they expire between June 2024 and June 2026.

§ The Transaction is conditional upon:

·      SPRF subscribing for shares, which will not exceed 29.9% of the
issued share capital of Bushveld  Minerals.

·      Orion Mine Finance providing its final consent.

Craig Coltman, CEO of Bushveld Minerals Limited, commented:

"I am very pleased to report that the sales and marketing agreement with SPRF
has now been signed, putting the Company in a stronger financial position
through the provision of the necessary near term working capital. This
agreement is just one in a package of interrelated transactions which will
fundamentally transform the Company. The added benefits of SPR's partnerships,
particularly with Highveld mean that there are further synergies to be
explored beyond this transaction."

 

 

 

Enquiries: info@bushveldminerals.com

 Bushveld Minerals Limited                                                           +27 (0) 11 268 6555
 Craig Coltman, Chief Executive Officer
 Chika Edeh, Head of Investor Relations

 SP Angel Corporate Finance LLP                      Nominated Adviser & Broker      +44 (0) 20 3470 0470
 Richard Morrison / Charlie Bouverat
 Grant Barker / Richard Parlons

 Hannam and Partners                                 Joint Broker                    +44 (0) 20 7653 4000
 Andrew Chubb, Matt Hasson, Jay Ashfield

  Tavistock Communications                           Financial PR
 Gareth Tredway / Tara Vivian-Neal / James Whitaker                                  +44 (0) 207 920 3150

 

 

ENDS

 

 

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 (http://www.bushveldminerals.com)

 

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