Bushveld Minerals Limited (LON:BMN) has confirmed the closing of a £580,000 share placing.
The group told investors the injection of funds will be used for general working capital, as well as supporting continuing costs related to its Vametco transaction.
It also supports the group’s work in respect of a cooperation agreement with the IDC, and continuing work on Lemur Resources IPP project in Madagascar.
Bushveld also updated on the proposed acquisition - alongside partner Yellow Dragon Holdings (YDH) - of a 78.8% stake in Strategic Minerals Cooperation, where efforts are focussed on a number of issues including the securing of regulatory approvals.
In the statement Bushveld said: “the company notes the recently announced disposal by YDH of the ordinary shares it held in Bushveld.
“The company sees no reason in this disposal to cause concern in respect of the interest and capacity of both YDH and Bushveld to complete the SMC acquisition.”
The placing sees 38.6mln new shares being issued at a price of 1.5p each. Investors will also receive share warrants (one for every two new shares purchased) which can be triggered at an exercise price of 2.4p over a two year period.
Fortune Mojapelo, Bushveld chief executive, said: "I am pleased with the successful placing, which comes in handy at an important time for the company.
“We have, as a company been careful in limiting the number of placings the company undertakes and have thus made significant strides with limited dilution for our shareholders.
“The placing will help us maintain our focus on the financing of the acquisition of SMC, which is set to transform us into a significant low cost integrated vanadium company."