Bushveld Minerals Limited Definitive sales and marketing agreement with SPR (9685W)

TIDMBMN

RNS Number : 9685W

Bushveld Minerals Limited

15 December 2023

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.

15 December 2023

Bushveld Minerals Limited

("Bushveld" or the "Company")

Definitive sales and marketing agreement signed with Southern Point Resources

Further to the Company's announcement on 11 September 2023, Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer, is pleased to announce it has entered into a definitive sales and marketing agreement with Southern Point Resources - Fund 1 SA L.P., represented by its general partner SPR GP1 Proprietary Limited, (" SPRF ").

Highlights

-- SPRF will carry out all marketing and sales of Vanadium product, produced at both the Vametco and Vanchem plants on an exclusive basis and, subject to the consent of Bushveld's joint venture partner in BELCO, in relation to electrolyte.

-- SPRF will provide Bushveld with a provisional working capital facility of US$25-30 million, to replace the existing working capital facilities.

-- Payable to Vametco and Vanchem on the basis of 85% of the potential sales value on an M -1 basis.

-- Marketing fee: 3.75% of the total revenue, 5% on achieved sales above US$40/kgV (the "trigger price"), for V(2) O(5) Flake the equivalent trigger price would be US$9/lb V(2) O(5) and for Chemical products US$9/lb V(2) O(5) plus the price premium achieved for chemical products above the V(2) O(5) Flake price.

-- The total Marketing fee shall not exceed 5% of the gross realised price for any such sale of finished product.

-- Three-year term from termination of the existing marketing and sales agreement is extendable by a further three years at SPRF's discretion.

-- SPRF marketing and sales arrangement will replace existing marketing and sales arrangements as and when they expire between June 2024 and June 2026.

-- The Transaction is conditional upon:

-- SPRF subscribing for shares, which will not exceed 29.9% of the issued share capital of Bushveld Minerals.

   --      Orion Mine Finance providing its final consent.

Craig Coltman, CEO of Bushveld Minerals Limited, commented:

"I am very pleased to report that the sales and marketing agreement with SPRF has now been signed, putting the Company in a stronger financial position through the provision of the necessary near term working capital. This agreement is just one in a package of interrelated transactions which will fundamentally transform the Company. The added benefits of SPR's partnerships, particularly with Highveld mean that there are further synergies to be explored beyond this transaction."

Enquiries: info@bushveldminerals.com

 
                                                             +27 (0) 11 268 
Bushveld Minerals Limited                                     6555 
Craig Coltman, Chief Executive 
 Officer 
Chika Edeh, Head of Investor Relations 
 
                                         Nominated Adviser   +44 (0) 20 3470 
SP Angel Corporate Finance LLP            & Broker            0470 
Richard Morrison / Charlie Bouverat 
Grant Barker / Richard Parlons 
 
                                                             +44 (0) 20 7653 
Hannam and Partners                      Joint Broker         4000 
Andrew Chubb, Matt Hasson, Jay 
 Ashfield 
 
 Tavistock Communications                Financial PR 
Gareth Tredway / Tara Vivian-Neal                            +44 (0) 207 920 
 / James Whitaker                                             3150

ENDS

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a vertically integrated primary vanadium producer, it is one of only three operating primary vanadium producers. In 2022, the Company produced more than 3,800 mtV, representing approximately three per cent of the global vanadium market. With 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

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END

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December 15, 2023 02:52 ET (07:52 GMT)

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