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, announces that, further to the Company’s announcement on 22 August 2017, Bushveld Vametco Limited (“Bushveld Vametco”) has agreed to increase the working capital facility (the “Facility”) governed by the definitive Sales and Marketing Agreement with Wogen Resources Limited (“Wogen”) (the “Agreement”) from US$9 million to US$11 million with immediate effect.
The Facility, which is an inventory and receivable financing, is in place to optimise the operating position of Vametco Alloys Limited (“Vametco Alloys”). The term of the Facility remains at five years from March 2017, renewable by mutual agreement, and are unchanged by the increase in the Facility size. Wogen will market the NitrovanTM product globally on an exclusive basis over the term of the Agreement, with the exception of Japan and Taiwan which markets are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in Strategic Minerals Corporation.
Further updates will be provided as appropriate.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the Wogen Agreement amendment, “Both this and the earlier facility amendment (as announced on 22 August 2017) relieves Bushveld Vametco’s operations from the fixed debt commitment of the (now retired) prepayment facility and avails of additional cash resources backed by inventory shipments in a rising vanadium market.”
