Bushveld Minerals Limited (LON:BMN) has told investors that a working capital funding facility with Wogen Resources has been expanded to US$11mln, form US$9mln.
It comes after other changes to the Wogen funding arrangements earlier this week – which saw the retiring of a US$3mln prepayment financing and an increase in the working capital facility to US$9mln from US$6mln.
READ: Bushveld retires US$3mln prepayment financing for vanadium interests
"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,” said Fortune Mojapelo, Bushveld chief executive.
The working capital facility is tied to a sales and marketing agreement with Wogen. It is an inventory and receivable financing arrangement, designed to optimise the operating position of Vametco Alloys business unit.
The arrangement has a five-year term, which began in March 2017, and it will be renewable by mutual agreement.
Wogen can market the unit’s Nitrovan product globally on an exclusive basis over the term of the agreement, except for in Japan and Taiwan which are covered by a separate exclusive arrangement with Sojitz Noble Alloys Corporation.