TIDMBMN
RNS Number : 8795Z
Bushveld Minerals Limited
20 March 2017
20 March 2017
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Financing and Sales and Marketing Agreement signed with
Wogen Resources Limited ("Wogen")
Bushveld Minerals Limited (AIM: BMN), a diversified mineral
development company with a portfolio of vanadium, titanium, iron
ore, tin and coal assets in Southern Africa, announces 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 ("SMC") from Evraz
Group SA ("Evraz") (the "Acquisition Transaction").
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 Nitrovan(TM) 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 Nitrovan(TM)
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.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited
Fortune Mojapelo +27 (0) 11 268 6555
Strand Hanson Limited (Nominated Adviser)
Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494
Beaufort Securities (Joint broker)
Jon Bellis +44 (0) 20 7382 8300
SP Angel Corporate Finance (Joint broker)
Ewan Leggat +44 (0) 20 3470 0470
Blytheweigh (Public Relations)
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a diversified AIM listed mineral
development company with a portfolio of vanadium, iron ore, tin and
coal greenfield assets in Southern Africa and Madagascar. The
Company's flagship platform, the vanadium platform, includes the
Mokopane Vanadium Project, the Brits Vanadium Project, and the
Bushveld Iron Ore & Titanium Project. The tin platform
comprises the Mokopane Tin Project whereas the Imaloto Coal
Project, which is being developed as one of Madagascar's leading
independent power producers, makes up the Company's coal
platform.
The Company's vision is to become the largest low cost
integrated primary vanadium producer through owned low-cost
high-grade assets. This incorporates development and promotion of
the role of vanadium in the growing global energy storage market
through Bushveld Energy, the Company's energy storage solutions
provider. Whilst the demand for vanadium remains largely anchored
in a slow growing steel industry, Bushveld Minerals believes there
is a strong potential for imminent significant global vanadium
demand surge from the fast-growing energy storage market,
particularly through the use and adoption of Vanadium Redox Flow
Batteries.
Bushveld Minerals' approach to project development recognises
that whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production with a visible timeframe, low capex requirements
and scalability are important factors in retaining an attractive
exit option. This philosophy is core to the Company's strategy in
developing projects. Detailed information on the Company and
progress to date can be accessed on the website:
www.bushveldminerals.com
ABOUT WOGEN RESOURCES LIMITED
Founded in 1972, Wogen has a long history of trading, selling,
procuring and servicing customers across the globe in the field of
exotic metals and minerals. The company prides itself on sourcing
materials from the remotest corners of the globe and delivering
them on time and competitively priced. Wogen deals in the whole
range of exotic non-ferrous metals specialising in Electronic,
Precious, Noble, Light and Minor Metals, Ferro Alloys and Minerals.
It trades in:
-- Ores and Concentrates such as Antimony, Chromium, Manganese and Wolframite;
-- Metals and Oxides such as Cobalt, Magnesium, the Platinum Group Metals (PGM's and OPM's)
and Tungsten;
-- Ferro Alloys such as Ferro Molybdenum, Ferro Tungsten and Ferro Vanadium
-- Industrial Minerals such as Rutile, Monazite and Ilmenite; and
-- The full spectrum of Rare Earths.
With a dynamic trading team who are each experts in their
specific fields and who collectively span the whole spectrum of
metals and minerals from A to Z, Aluminium to Zirconium, Wogen
services within the exotic metals and minerals arena extends
to:
-- Marketing and Distribution;
-- Sourcing and Procurement;
-- Agency;
-- Logistics;
-- Financing; and
-- Investing.
Wogen's customers include governments, steel mills, industrial,
technological and aerospace consumers, foundries, the alloying
industry, miners, smelters, merchants and traders. Its active
markets are worldwide but Wogen's main strengths stem from its
locations in China, Hong Kong, Russia, South Africa and London.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGRSFWEFUFWSEID
(END) Dow Jones Newswires
March 20, 2017 03:01 ET (07:01 GMT)
Bushveld Minerals (LSE:BMN)
Historical Stock Chart
From Apr 2024 to May 2024
Bushveld Minerals (LSE:BMN)
Historical Stock Chart
From May 2023 to May 2024