Bushveld Minerals publishes update on Vametco financing

Bushveld Minerals Limited provided the following update on the financing agreements (the "Agreements"), in support of the acquisition by Bushveld Vametco Limited ("BVL") from Evraz Group S.A ("Evraz") of a 78.8% shareholding interest in Strategic Minerals Corporation ("SMC") (the "Acquisition"), with Barak Fund SPC Limited ("Barak") (the "Barak Financing").  

As announced on 30th March 2017, the Barak Financing comprised a bridge loan facility of up to US$11 million ("Bridge Loan"), repayable within two months of drawdown.

Further to this announcement, BVL has agreed with Barak to restructure the Bridge Loan. Under the new terms, repayment of all outstanding principal, interest and fees has been extended to 30 June 2017, with 80% of the Bridge Loan principal (i.e. US$8.8 million) due for repayment by 31 May 2017 and the balance by 30 June 2017.

The Company is pleased to advise that following this restructuring BVL has repaid the US$8.8 million by the 31st May 2017 as required and an additional US$1.2 million on 2 June 2017, to bring the total repayment of the Bridge Loan to US$10.0 million.

As of 2 June 2017, the balance therefore that is outstanding to Barak, and payable by 30 June 2017, is US$1.0 million plus fees and interest, as previously disclosed. The Company remains confident of settling these final payments from internal cash flows without recourse to equity capital raises, as previously announced. 

Post the end of June, BVL will only have the US$3.0 million Wogen Resources Limited Prepayment Facility ("Wogen Facility") left in place as external debt. BVL expects to repay the Wogen Facility over a 15 month period prior to the end of 2018 out of operating cash flows.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented, "We are delighted with the progress we have made in settling the Bridge Loan which formed an essential aspect of concluding the Vametco transaction and enabled us to avoid unnecessary dilution for our shareholders.  Acquiring SMC for less than 10% of its replacement cost, through a highly leveraged acquisition model and repaying 70% of the debt within 2 months of the acquisition is not a small achievement. We are grateful to the Barak team for their support and flexibility in working with us on this important financing. Of course, the real story is our strategy going forward for the Vametco asset and particularly its contribution to our ongoing efforts of building a deeply integrated vanadium platform." 

Bushveld Minerals is an AIM listed vanadium producing company with a diversified projects portfolio of tin and coal assets in Southern Africa.