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.
29 February 2024
Bushveld Minerals
Limited
("Bushveld" or the
"Company")
Further Update on Outstanding
Funds
Bushveld Minerals Limited (AIM: BMN),
the primary vanadium producer, announces that the Company has received a further ZAR65 million
(~US$3.4 million) from one of Southern Point Resources' ("SPR")
limited partners, on behalf of SPR, as a loan on an
interest-free basis. The Company has now been loaned ~US$9.4
million on an unsecured, non-refundable, interest-free basis by SPR
(the "Loan"). The delay in receiving the remaining balance of
US$3.1 million is due to outstanding funds from
one of SPR's institutional partners. SPR has communicated that the
outstanding balance will be paid no later than 14 March
2024.
As previously mentioned, the Loan
will be repaid once SPR provides Bushveld with the entire US$12.5
million subscription monies pursuant to the SPR subscription
agreement (the "Subscription Agreement"). The monies received today
have been paid from SPR's bank account in South Africa to
Bushveld's bank account in South Africa. If the funds received to
date were to be used to satisfy SPR's obligations under the
Subscription Agreement, the approval of the South African Reserve
Bank would have been required which would have resulted in further
delays in the flow of funds.
The Company remains engaged in
discussions with SPR as to when SPR will meet its obligations under
the Subscription Agreement. The subscription monies owed to
Bushveld remain classified as a short-term receivable on the
balance sheet until they have been received. Furthermore, the share
certificate that has been issued to SPR remains in the Company's
possession until the default is rectified. Assuming, receipt of
final funds by 14 March 2024, the Company will have sufficient
working capital until it receives the consideration due to it
following the completion of the sale of the 50% interest in Vanchem
and its 64% interest in Mokopane.
Acacia Resources Limited -
Subscription Monies
As announced on 05 December 2023,
Acacia Resources Limited ("Acacia") was due to settle its
subscription of US$3.5 million on or before 28 February 2024. The
Company has not received the subscription monies from Acacia.
Acacia requested a further two-month extension to settle its
investment, which the Company denied. Acacia is, accordingly, in
breach of the terms of the subscription letter which it signed with
the Company on 30 November 2023. The Company is actively engaging
with Acacia to resolve this issue as quickly as possible while
reserving its right to take appropriate legal action.
Craig Coltman, CEO
of Bushveld Minerals commented:
"We
are grateful to one of SPR's limited partners for providing the
US$9.4 million in their own capacity; this demonstrates SPR's
commitment towards the Company. While it is frustrating that the
entire funds have not been received, the Board and Management
continue to engage actively and constructively with SPR. We are
also actively engaging with Acacia to resolve this issue as quickly
as possible."
Enquiries: info@Bushveldminerals.com
Bushveld Minerals Limited
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+27 (0) 11
268 6555
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Craig Coltman, Chief Executive Officer
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Chika Edeh, Head of Investor
Relations
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SP Angel Corporate Finance
LLP
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Nominated Adviser & Joint
Broker
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+44 (0) 20
3470 0470
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Richard
Morrison / Charlie
Bouverat
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Grant Barker / Richard
Parlons
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Hannam &
Partners
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Joint
Broker
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+44 (0) 20
7907 8500
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Andrew Chubb / Matt
Hasson / Jay Ashfield
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Tavistock
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Financial PR
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+44 (0)
207 920 3150
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Gareth Tredway / Tara
Vivian-Neal / James Whitaker
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ENDS
ABOUT BUSHVELD MINERALS
LIMITED
Bushveld Minerals is a primary
vanadium producer, it is one of only three operating primary
vanadium producers. Bushveld has 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