LONDON (Alliance News) - Bushveld Minerals Ltd Friday said it has agreed to sell the balance of the outstanding facility with Darwin Strategic Ltd and has placed 16.7 million new shares at 3 pence each, with both actions raising just shy of GBP1.3 million for the company.
"The proceeds will principally be used to support the commencement of the feasibility study for its world-class Vanadium Project and to fund the company's operational costs. Efforts to engage potential strategic partnerships for the company's other platforms are continuing, with interest being shown across all assets in the portfolio," Bushveld Minerals said in a statement.
In a statement, the mineral development company said the outstanding facility, comprising 25 million shares already in issue, was acquired by Riverridge Ltd, at a 9% premium to the opening mid-market price.
Darwin originally subscribed for 50 million shares, Bushveld said.
Bushveld said it placed the 16.7 million new shares with one existing institutional investor.
"The Darwin facility announced in December 2013 was an innovative funding mechanism that allowed the company to place shares at its discretion into the market over a period during which it could benefit from a rising share price," Chief Executive Fortune Mojapelo said in a statement. "However, several factors, including adverse conditions in the market, constrained the company in fulfilling this objective. "
"Accordingly, the company decided to liquidate the entire Darwin structure. We couldn't be more pleased that this has been done with the support of long-term investors/shareholders of Bushveld at an important time in the development of its projects," he said.
"Having launched the Bushveld Vanadium Project platform almost one year ago, and more recently completed a compelling Scoping Study, we are pleased to further the funding of its feasibility study with the proceeds announced today," the CEO added.
Bushveld shares were up 0.1% at 3.53 pence Friday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Bushveld Minerals (BMN)