Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yeah, shame such articles about how many zillions of GWh are planned to be going ahead in China. - and there have been numerous in a similar vain over last few years - don’t have and never have had, any impact on V demand or price.
Instead China stuck a 13.5% import duty on it - they obviously don’t consider they’re gonna need our stuff and so we so no longer export a bean to China.
And despite all the hype - there no current signs of those Chinese guys buying it up like there’s gonna be no tomorrow whilst the V price is at rock bottom in order to supply those zillions of expected GWh’s.
Maybe they're waiting to make a rock bottom offer for our mine so they can supply themselves with as much as they need. Maybe it’s the Chinese who are - behind the scenes - the ones responsible for SPR’s missing funds but want to just keep BMN ticking over with a drip, drip policy until the time is right to make their move? Just a thought!
CC has gone down the road straight as an arrow in all respects. He’s got a call booked in at 4 pm with SPR today to get the latest news on the funding issues.
Main takeaway for me also is … he’s put Mikhail Nikomarov under severe pressure to come up with some electrolyte orders. Not a penny more will be invested in Belcro unless Nikomarov puts some orders where his mouth is!
Under the terms of agreement, the Orion financing was clearly stated to be conditional on the raising of the $12.5 million from 3rd party sources- its possible imo, that Orion have now confidently gone ahead with this due to having been given an assurance that what is owed will be made good from other sources (Orange Tust?) IF SPR do eventually default.
Integrated primary vanadium producer Bushveld Minerals has entered into a conditional agreement to refinance its existing convertible loan notes with Orion Mine Finance, following the term sheet agreed in May this year.
The conditional agreement extends the maturity date for Bushveld's existing convertible loan notes to January 31, 2024, from December 21, this year, and refinances the convertible debt obligations of about $46.9-million.
There hasn’t been any assurance or proof that the rest of the funds outside of the equity issue side of the equation have been yet received. All we know for sure is they have got c.$8 million plus the recently paid $2 million. It is wrong to assume that the company are in receipt of $25 million from SPR. That may or may not be the case!
The best advice any investor can play by is - Assume and presume nothing - and trust no- one!
RNS 5587Y 3/1/2024
“All other funds raised as part of the US$18.4 million equity issue have been received, other than funds due from Acacia, which, as previously announced, are due for settlement on or before 28 February 2024”
“We also need V to play ball on top of everything else”. Yep, and there might lie the root of the cash hold up!
Could well be what’s behind a reconsidered thinking on the part of their capital backers - V playing ball doesn’t look like to be something which isn't going to happen anytime soon and any return on investing more funds into this project is looking very unlikely..
There is obviously a very real risk the owed funds are just going to get used up on keeping the lights on at BMN and so the backers have decided to put a stop to throwing good money after bad!
If that is what’s behind the cash hold up - the only alternative provision of the required funding might come from the die hards - like Orange Trust - it has to be very doubtful that any Institutional outsiders will now want to be interested in a stable but low priced loss making mining environment for V - which looks to continue unless general global conditions improve quite drastically - and that's looking extremely doubtful!
Bit of both. More likely that KS had already made the decision to head for the exit door when the news broke and that panicked him into a more instant knee jerk reaction to get rid of his freely available holdings quickly as he could.
Now - with evidence of lots of round numbers, it’s probably him that’s getting rid of the rest of his stash with associates flying on his coat tails.
It’ll work itself out.
@ AlexS12 … imo, rather than playing games with BMN or trying to be clever with manipulating the market - its more likely that the cash hold up is due to procedural/clarification issues between SPR and their capital backers … whoever they are … and wherever they are based!
@Cincinnatus. Yes agreed, other than that press release there seems to be no other info on SPR in the public domain. It is even possible that there is another entity behind them that wish to remain well hidden. It could even be a well covered up Chinese State enterprise for all we know!
It wouldn’t surprise me if it was.
Confucias says Chinese folk move in very dark and mysterious ways … and there is one thing we DO know - China are going to need zillions of tonnes of V in the very near future even if the ROW don’!
One other thing.for sure … CC is no fool, he’s been around the block with all the big hitters, he knows the industry inside out, and will have done all the DD necessary before going into this with them. He also has the full backing of Orange Trust … those guys are no fools either. They will all know, all there is to know … about SPR.
I think we’ll see the colour of the dosh soon enough.
Kamran issues are just a side story.
@cincinnatusatus.
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what exactly do we know about southern point resources or, to be more precise, the “spr gp1” fund?”
Only this blurb which was published at the time of the sale:
Southern Point Resources is a South African born focussed investment fund founded by South African mining entrepreneurs and mining finance specialists with extensive sector credentials. SPR leverages financial and operational synergies with associated group companies which generate in excess of US$500 million of revenue and US$175 million of EBITDA on a combined basis. Its principals combine a strong technical and operational skills base with an extensive deal-making and financing track record, operating a group of companies across large scale mining, beneficiation, contract mining, engineering and logistics. The most notable associated asset is South Africa's 6th largest thermal coal mining and trading company which owns and operates seven coal mines producing, trading, and selling over 10 million tons of coal per annum. Additionally, SPR has executed in excess of US$600 million of mining and mining finance transactions between our principals. This associated asset and skills base combined with extensive financial and execution capacity makes SPR well placed to execute selected transactions in the Sub-Saharan Africa resources sector.
Given South Africa's strategic endowment of steelmaking inputs and alloying materials reserves, SPR's principals' drive to diversify from carbon materials into green metals, and the groundswell transition in energy value chains and technologies, SPR is focussed on highly value accretive equity and financing transactions in the steelmaking inputs and future, and transition metals sub-sectors.
More than 70% of the world's known Vanadium resources are located in South Africa, vanadium is a critical steelmaking input and also a very promising emergent battery metal.
Bushveld owns two of the world's four operating primary vanadium assets, a globally significant resource base, making the transaction highly strategic for SPR and very much in line with our fund's investment approach.
SPR represents a well-capitalised Sub-Saharan Africa centric mining investment fund with in-depth local mining expertise, experience, and capability. SPR adds value beyond pure financial investment by actively managing its underlying investments.
“Was the Armageddon deadline really necessary?”
Absolutely! It’s a public message to SPR.
It tells SPR in no uncertain terms that the sums they have so far invested are at grave risk of disappearing if they don’t pull out all stops to meet the rest of their contractual commitments-
It tells them he ain’t messing about!
investment fund spr gp1 (southern point resources) has signed a binding term sheet to invest $69.5m-$77.5m in bushveld minerals, a south africa-based integrated primary vanadium producer.
according to the terms sheet, an interim working capital facility of $8.1m will be provided to fund the ongoing expansion of production at the vanchem vanadium processing facility in south africa.
through the investment, southern point resources will gain a stake of 50% in bushveld minerals’ subsidiary, which owns the vanchem vanadium plant.
southern point resources will also acquire the vanadium producer’s 64% equity interest in a subsidiary that owns the mokopane vanadium project located in the mokopane district of limpopo province in south africa. both acquisitions will cost approximately $25m for southern point resources.
bushveld minerals ceo craig coltman said: “introducing a partner at vanchem provides a pathway for the group to increase production beyond the base case and would be value accretive, with synergies arising from vanchem being able to access a steady supply **** with high vanadium content from the highveld facility.”
southern point resources will also make a new equity investment of $12.5m in bushveld minerals. the latter said that the number of shares to be subscribed will not exceed 29.9% of its ordinary shares of 1p each in issue.
besides, the commitment will include a new marketing and sales arrangement under which southern point resources will carry out all marketing and sales of products for bushveld minerals.
the former will provide a medium-term trade finance working capital facility of nearly $25m-30m to the vanadium producer.
furthermore, southern point resources plans to make a future investment of $7m-10m in vanchem towards the recommissioning of kiln-1 to increase output. this will be contingent upon feasibility studies.
southern point resources stated: “southern point is proud to announce this series of collaborative transactions which will enable bushveld to restructure their current balance sheet and allow all stakeholders to unlock significant benefit from a unique set of underlying assets which have much potential.”
@ Moneyman64,
“Fear that the funder have decided to force BMN into liquidation and then they could probably buy up the whole company for peanuts”
The funding is contractual, so doubt that - the fine imposed for breach of contract and the resultant compensation imposed on them, would probably be far in excess of the sum owed, that idea would be very unlikly, imo.
Bushveld Minerals : December Corporate presentation.
CORPORATE UPDATE December 18, 2023
https://www.marketscreener.com/quote/stock/BUSHVELD-MINERALS-LIMITED-10259123/news/Bushveld-Minerals-December-Corporate-presentation-45590561/
@ coffeecups … Bullsh|t!
VRFB manufactures will only invite tenders from their preferred electrolyte suppliers and “take it now” - IF, they have won a tender due to having received a BESS contract themselves which they have to fulfill.
All the signs are - they ain’t got any orders!
One thing for sure - they ain’t gonna buy cheap electrolyte from BMN and stockpile it in the hopes that they’ll eventually be able to win a contract so they can flog it anytime soon!