# Bushveld Minerals Limited Welcome Wogen as a longterm partner for Nitrovan

- Link: https://www.directorstalkinterviews.com/bushveld-minerals-limited-welcome-wogen-longterm-partner-nitrovan/412725767
- Published: 2017-03-20T07:22:58+00:00
- Author: Giles Arbor

**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, announced today that on Friday 17 March 2017 it signed a definitive Sales
and Marketing Agreement with Wogen Resources Limited (the “Agreement”).

This assists with the financing required for the conditional acquisition by Bushveld
Vametco Limited (“Bushveld Vametco”) of a 78.8% interest in Strategic Minerals Corporation
from Evraz Group SA.

Bushveld Vametco has previously provided the required proof of funding to Evraz,
in the form of signed term sheets, to secure funding for the Acquisition Transaction.
Bushveld Vametco has now signed the Agreement with Wogen Resources Limited based
on which Wogen will become a marketer and distributor of Vametco Alloys Limited’s
NitrovanTM production (the “Product”) and provide financing to the Bushveld Vametco
Group (“Wogen Financing”).

The Wogen Financing comprises a US$3.0 million Product prepayment as part of the
acquisition debt package for the Acquisition Transaction and inventory and receivable
financing of US$6.0 million to optimise the position of the operations of Vametco
Alloys. The Agreement provides for full repayment of prepayment facility by the 
end of 2018, notwithstanding it being repayable on demand. The overall term of the
Agreement is five years, renewable by mutual agreement and Wogen will market the
Product globally on an exclusive basis, with the exception of Japan and Taiwan which
markets are covered exclusively by Sojitz Noble Alloys Corporation, the minority
partner in SMC. Bushveld has agreed to guarantee Bushveld Vametco’s payment obligations
under the Agreement.

> **Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the Wogen Agreement,**“
> We are pleased to welcome Wogen as a long term partner for the sales, marketing
> and distibution of NitrovanTM post completion of the Transaction. The Wogen Agreement
> not only takes us a step closer to completing the transformational acquisition
> of SMC but also provides important working capital finance for Vametco Alloys.
> We look forward to a fruitful and mutually beneficial relationship based on Wogen’s
> extensive experience in commodities trading and distribution across a range of
> commodity markets including vanadium, servicing customers across the globe.”
> **John Craig, CEO of Sanctuary Partners Limited, the parent company of Wogen Resources
> Limited commented,** “We at Wogen are particularly pleased to be assisting Bushveld
> Vametco with this exciting acquisition and in supporting the company through the
> development of sales and distribution of its products on a global basis into the
> future”.

The signed Agreement with Wogen is conditional, inter alia, on the successful completion
of the Share Purchase Agreement between Bushveld Vametco and Evraz.

As part of the Agreement, Wogen will receive 15,000,000 Bushveld warrants, each 
of which entitlies Wogen to subscribe at any time during the subscription period
of three years in cash for one ordinary share in the capital of Bushveld Minerals
Limited at the subscription price of 7.0 pence.

Further updates will be provided as appropriate.

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