Bushveld Minerals Limited (LON: BMN) has agreed to issue up to £8.0mln of unsecured convertible bonds to UK-based fund Atlas Capital Markets Limited, and its New York-based joint venture company, Atlas Special Opportunities Limited.
The funding will raise up to £8.0mln through the creation and issuance of convertible bonds with denomination of £25,000 each and bearing a coupon of 7.5% per annum.
READ: Bushveld has the largest primary vanadium resource base anywhere, at a time of increasing price strength
The bonds are issued at 98 per cent of face value.
The first tranche of £4.5mln has already been issued. The second tranche of £3.5mln is to be issued at the company's discretion forty working days after the the first tranche.
The money raised will be applied to further developing the company's vanadium and tin platforms, as well as providing general working capital.