REG - Bushveld Minerals Ld - Further Update on Outstanding Funds

Bushveld MineralsAnnouncement

19/01/2024 16:45

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RNS Number : 3519A  Bushveld Minerals Limited  19 January 2024

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.

 

19 January 2024

Bushveld Minerals Limited

("Bushveld" or the "Company")

Further update on Outstanding Funds

 

Further to the Company's announcement on 15 January 2024, Bushveld Minerals
Limited (AIM: BMN), the integrated primary vanadium producer, remains in
regular communication with Southern Point Resources ("SPR"). Despite previous
assurances provided by SPR regarding late transfer of funds to the Company
being a result of processing delays, SPR has since identified and informed the
Company that the delay in settlement of funds is due to one of its
institutional funding partners defaulting on an agreement with SPR to commit
the funds to satisfy SPR's obligations to the Company. In order to mitigate
its breach, SPR is working with its partners to provide an alternative source
of funding to resolve the default as soon as possible.

 

The Company has today received payment of ZAR40 million (~US$2 million) from
SPR which has been provided on an interest free basis and will be repaid once
SPR provides Bushveld with the entire US$12.5 million, pursuant to the SPR
subscription agreement (the "Subscription Agreement").  Under the
Subscription Agreement, SPR was due to transfer the US$12.5 million from an
offshore bank account into Bushveld's UK bank account. However, due to the
events that have recently transpired, the payment received today has been paid
into a Bushveld subsidiary's South African bank account from SPR's bank
account in South Africa. If the funds received today were to be used to
satisfy SPR's obligation under the Subscription Agreement, approval of the
South African Reserve Bank would have been required, which would have resulted
in further delays in flow of funds. Until the entire US$12.5 million is
received SPR remains in default of the Subscription Agreement.

 

As a result of the delayed settlement, the Company estimates that
approximately two weeks production will be lost in January. In addition, the
kiln at Vametco is currently being shutdown in order to be refurbished.
Additionally, the Company is assessing the impact on production levels beyond
January. Based on the Company's current working capital requirements, the
Board anticipates Bushveld to have sufficient working capital to sustain the
business until the end of February 2024, albeit at reduced production levels.
SPR have communicated that the full US$12.5 million will be paid no later than
the 28 February 2024.

 

The Board continues to monitor the situation closely and is working with its
creditors and stakeholders, including Orion Mine Finance, to manage the
financial condition of the Company.

 

Craig Coltman, CEO of Bushveld Minerals commented:

"While very frustrating that the full funds have to date failed to
materialise, the Board and Management continue to engage actively and
constructively with SPR. We are encouraged to receive this first payment from
SPR whilst they work with one of their founding partners to resolve the
default. We will provide further updates as appropriate with a view to
resolving this as quickly as possible."

 

SPR commented:

"The delay in payment of committed funds from an institutional investor is
disappointing, and has caused us a delay in settling our equity funding
commitment, we continue to engage in promising discussions with senior
representatives at the institution to make good upon their commitment.

 

Notwithstanding the difficult situation we are fully committed to our package
of investments into Bushveld, and in lieu of the committed institutional
capital, we have worked urgently to make arrangements with alternative limited
partner funding to make good on our contractual commitments to the Company. We
look forward to concluding the remaining transactions and crystalising our
long term partnership with Bushveld Minerals."

 

 

Enquiries: info@Bushveldminerals.com (mailto: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 & Joint Broker      +44 (0) 20 3470 0470
 Richard Morrison / Charlie Bouverat
 Grant Barker / Richard Parlons

 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 vertically integrated primary vanadium producer, it is
one of only three operating primary vanadium producers. Bushveld has 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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