Bushveld Minerals Limited (LON:BMN) has announced a US$22.2mln equity funding to support the group’s vanadium expansion programme.
The funding was backed by a consortium of cornerstone investors, including the original founders of Mimosa Platinum and LionOre Mining International, and key investors in Mantra Resources.
Some 152mln new shares are being sold at a price of 10.3p, representing the 5-day volume weighted average price, and the new stock equates to 14.4% of the issued share capital.
"We are delighted by the response from investors to this capital raise which was significantly oversubscribed,” said Fortune Mojapelo, Bushveld chief executive.
“We are particularly pleased to welcome to the Company a consortium of highly experienced mining investors as well as several leading UK institutional investors who buy into and support our ambitions to build a significant low cost and integrated primary vanadium Company.
“The capital raise will allow us to improve our capital and corporate structure and enhance the company's proximity to its underlying cash generating assets as we continue to develop our growth opportunities. We are grateful to the existing Bushveld shareholders who have continued to support the company."