REG - Bushveld Minerals Ld - Further Update on Outstanding Funds

Bushveld MineralsAnnouncement

29/02/2024 17:30

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RNS Number : 0488F  Bushveld Minerals Limited  29 February 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.

 

29 February 2024

Bushveld Minerals Limited

("Bushveld" or the "Company")

 

Further Update on Outstanding Funds

 

 

Bushveld Minerals Limited (AIM: BMN), the primary vanadium producer, announces
that the Company has received a further ZAR65 million (~US$3.4 million) from
one of Southern Point Resources' ("SPR") limited partners, on behalf of SPR,
as a loan on an interest-free basis. The Company has now been loaned  ~US$9.4
million on an unsecured, non-refundable, interest-free basis by SPR (the
"Loan"). The delay in receiving the remaining balance of US$3.1 million is due
to outstanding funds from one of SPR's institutional partners. SPR has
communicated that the outstanding balance will be paid no later than 14 March
2024.

 

As previously mentioned, the Loan will be repaid once SPR provides Bushveld
with the entire US$12.5 million subscription monies pursuant to the SPR
subscription agreement (the "Subscription Agreement"). The monies received
today have been paid from SPR's bank account in South Africa to Bushveld's
bank account in South Africa. If the funds received to date were to be used to
satisfy SPR's obligations under the Subscription Agreement, the approval of
the South African Reserve Bank would have been required which would have
resulted in further delays in the flow of funds.

 

The Company remains engaged in discussions with SPR as to when SPR will meet
its obligations under the Subscription Agreement. The subscription monies owed
to Bushveld remain classified as a short-term receivable on the balance sheet
until they have been received. Furthermore, the share certificate that has
been issued to SPR remains in the Company's possession until the default is
rectified. Assuming, receipt of final funds by 14 March 2024, the Company will
have sufficient working capital until it receives the consideration due to it
following the completion of the sale of the 50% interest in Vanchem and its
64% interest in Mokopane.

 

Acacia Resources Limited - Subscription Monies

 

As announced on 05 December 2023, Acacia Resources Limited ("Acacia") was due
to settle its subscription of US$3.5 million on or before 28 February 2024.
The Company has not received the subscription monies from Acacia. Acacia
requested a further two-month extension to settle its investment, which the
Company denied. Acacia is, accordingly, in breach of the terms of the
subscription letter which it signed with the Company on 30 November 2023. The
Company is actively engaging with Acacia to resolve this issue as quickly as
possible while reserving its right to take appropriate legal action.

 

Craig Coltman, CEO of Bushveld Minerals commented:

"We are grateful to one of SPR's limited partners for providing the US$9.4
million in their own capacity; this demonstrates SPR's commitment towards the
Company. While it is frustrating that the entire funds have not been received,
the Board and Management continue to engage actively and constructively with
SPR. We are also actively engaging with Acacia to resolve this issue as
quickly as possible."

 

 

 

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 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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