Proactive Investors - Run By Investors For Investors

Bushveld retires US$3mln prepayment financing for vanadium interests

This is a further indication of the strength of the vanadium market
Vanadium chemical table
Bushveld is becoming a significant player in the vanadium space

Bushveld Minerals Limited (LON:BMN) has agreed with Wogen Resources Limited to retire a US$3 mln prepayment facility that formed part of a wider sales and marketing agreement for Nitrovan, a vanadium product produced by Vametco, a company in which Bushveld now owns a significant stake.

Simultaneously, the existing working capital facility Vametco will increase by same amount from US$6mln to US$9mln.

The US$3mln prepayment financing formed part of the acquisition funding for Bushveld Vametco's acquisition of the 78.8% interest in Strategic Minerals Corporation from Evraz Group S.A, the previous owner of Vametco. Bushveld owns 45% of Bushveld Vametco, with joint venture partner Yellow Dragon holding the other 55%. 

READ: Bushveld Minerals plans vanadium battery plant to meet soaring power storage demand

Wogen will continue to market Vametco's Nitrovan product globally on an exclusive basis, with the exception of Japan and Taiwan which are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in Strategic Minerals Corporation.

"The retirement of the prepayment facility at such an earlier point than initially anticipated is testament to the quality of Vametco's operations and the extent to which the vanadium market has strengthened in the past year,” said Fortune Mojapelo, chief executive of Bushveld, in a statement.

“Wogen continues to be a supportive and beneficial partner and its increase in the working capital facility from US$6 to US$9 million we believe demonstrates their confidence in Bushveld Vametco's strategy and vision going forward.”

WATCH: Bushveld Minerals riding high on back of strengthening Vanadium prices

 

 

View full BMN profile View Profile

Bushveld Minerals Limited Timeline

Related Articles

1530643627_electric-car.jpg
July 03 2018
The company’s goal is to be a leader in the battery metals sector, with cleaner cobalt in Australia
graph showing two work streams
October 24 2018
A project development stream focused on Hayes Creek and an exploration stream.
1540886089_DJI_0816_resized.jpg
October 30 2018
Rainbow is continuing to drive towards a production rate of 400 tonnes per month

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use