Further Update on Outstanding Funds

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: [e-mail]

Bushveld Minerals Limited		[phone]
Craig Coltman, Chief Executive Officer
Chika Edeh, Head of Investor Relations
SP Angel Corporate Finance LLP	Nominated Adviser & Joint Broker	[phone]
Richard Morrison / Charlie Bouverat
Grant Barker / Richard Parlons
Hannam & Partners	Joint Broker	[phone]
Andrew Chubb / Matt Hasson / Jay Ashfield
Tavistock	Financial PR	[phone]
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

 

END