Bushveld Minerals Limited Further Update of Agreement with Wogen Resources (8688O)

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RNS Number : 8688O

Bushveld Minerals Limited

24 August 2017

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Further Update of Agreement with Wogen Resources Limited

Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, announces that, further to the Company's announcement on 22 August 2017, Bushveld Vametco Limited ("Bushveld Vametco") has agreed to increase the working capital facility (the "Facility") governed by the definitive Sales and Marketing Agreement with Wogen Resources Limited ("Wogen") (the "Agreement") from US$9 million to US$11 million with immediate effect.

The Facility, which is an inventory and receivable financing, is in place to optimise the operating position of Vametco Alloys Limited ("Vametco Alloys"). The term of the Facility remains at five years from March 2017, renewable by mutual agreement, and are unchanged by the increase in the Facility size. Wogen will market the Nitrovan(TM) product globally on an exclusive basis over the term of the Agreement, with the exception of Japan and Taiwan which markets are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in Strategic Minerals Corporation.

Further updates will be provided as appropriate.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the Wogen Agreement amendment,

"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."

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

Enquiries: [e-mail]

Bushveld Minerals Limited

Fortune Mojapelo [phone]

Strand Hanson Limited (Nominated Adviser)

   James Harris / Ritchie Balmer                                                 [phone] 

Beaufort Securities (Joint broker)

Jon Bellis [phone]

SP Angel Corporate Finance (Joint broker)

Ewan Leggat [phone]

Blytheweigh (Public Relations)

   Tim Blythe / Camila Horsfall                                                  [phone] 

Gabriella von llle [phone]

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.

The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

Bushveld Minerals' approach to project development recognises that whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. This philosophy is core to the Company's strategy in developing projects. Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com

This information is provided by RNS

The company news service from the London Stock Exchange

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August 24, 2017 02:01 ET (06:01 GMT)