Bushveld Minerals Limited (LON:BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa has today announced that, following the announcement on 20 March 2017 regarding a definitive Sales and Marketing Agreement with Wogen Resources Limited (“Wogen”) (the “Agreement”), Bushveld Vametco Limited (“Bushveld Vametco”) has agreed with Wogen to retire in full the US$3 million prepayment facility and to simultaneously increase the Vametco Alloys (Proprietary) Limited (“Vametco”) working capital facility by same amount from US$6 million to US$9 million.
As previously announced, the US$3 million prepayment financing formed part of the acquisition funding for Bushveld Vametco’s acquisition of the 78.8% interest in Strategic Minerals Corporation (“SMC”) from Evraz Group S.A., which completed on 6 April 2017.
Whereas the Agreement provided for full repayment of the prepayment facility by the end of 2018, the Company has taken the decision to retire the facility much sooner and expand the working capital facility to ensure greater flexibility in the financing of product sold. Wogen will continue to market Vametco’s NitrovanTM product globally on an exclusive basis, with the exception of Japan and Taiwan which are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in SMC.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented: “The retirement of the prepayment facility at such an earlier point than initially anticipated is testament to the quality of Vametco’s operations and the extent to which the vanadium market has strengthened in the past year. Wogen continues to be a supportive and beneficial partner and its increase in the working capital facility from US$6 to US$9 million we believe demonstrates their confidence in Bushveld Vametco’s strategy and vision going forward.
“This is an exciting time for the company and I look forward to updating our shareholders with our progress in due course.”