REG - Bushveld Minerals Ld - SPR Funding & Orion 2024 Financing Package Update

Bushveld MineralsAnnouncement

24/06/2024 14:00

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RNS Number : 6319T  Bushveld Minerals Limited  24 June 2024

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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

 

24 June 2024

Bushveld Minerals Limited

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

Update on SPR Funding & Orion 2024 Financing Package

Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium
producer, hereby provides an update on the status of the outstanding
conditions to enable it to drawdown on the additional funding from Southern
Point Resources Fund I S.A. LP ("SPR") and to complete the Orion 2024
Financing Package (as detailed in the Company's circular dated 13 May 2024).

Following shareholder approval of the Vanchem Disposal on 31 May 2024, the
Company has to date received US$3.5 million from SPR, in advance of all the
outstanding conditions being satisfied, to reduce long outstanding creditors
balance. The balance of the second tranche, being a further US$1.5 million,
was expected to flow shortly thereafter. However, the concluding of the
agreements and obtaining the required consents from Orion has taken longer
than expected. Whilst this delay in the receipt of funds was initially
manageable, the Company now finds itself in a position whereby Vanchem is
unable to secure adequate ore and raw materials to continue operating at
unconstrained production levels. Consequently, should the funding not be
forthcoming within the next 2 days, a controlled production ramp down will
commence during the course of the week, the length of which will be determined
by the timing of the receipt of further funds. Furthermore, sustainable
production at Vametco is currently being impacted due to its inability to
procure critical spares. The Company, SPR and Orion continue to actively
engage to ensure that the required agreements and consents are executed as
quickly as possible.

The Company has prepared its accounts, which are ready to release before 30
June, on the assumption that the SPR and Orion agreements are concluded in the
coming days. In the event that the SPR and Orion agreements are not concluded
in time, there would be material changes to the Company's accounts.  In such
circumstances, the Company would not be able to publish its accounts within
six months of the end of the financial year to which they relate (i.e.
December 2023), and trading in the Company's shares on AIM would be suspended
on 01 July 2024.

 

Vanchem Disposal - Competition Tribunal Approval

As a result of the amended terms of the Vanchem Disposal, the initial
application for the disposal of 50% acquisition of Vanchem to SPR had to be
withdrawn and a new application was required. This application was lodged by
SPR with the Competition authorities on 21 June 2024. The Company will advise
the market as to the updated timing of receipt of the Competition Tribunal's
approval in due course.

 

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 / 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

 

 

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