Member Info for Pdub

Now 12.925 to sell

For those worried about the CLNs this is particularly relevant:

“ The BMN CLN has been designed to limit any potential overhang on the BMN share price by structuring any conversion in six equal tranches over a period of 18 months."

That should deal with unnecessary criticism.

https://www.investegate.co.uk/bushveld-minerals-ld--bmn-/rns/update-on-the-vrfb-holdings-limited---cln-issue/202203291145104130G/

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

" The investment by Mustang into VRFB-H was part of the Company's strategy to leverage its relationships and capital through VRFB-H's in support of Enerox Holdings Limited's ("EHL") capital requirements.



Mustang could not proceed with preparation and issuing of the required prospectus in terms of the LSE until the litigation, initiated by VRFB-H's partner in EHL, had been resolved, necessitating the extension of the deadline by which Mustang is to issue its prospectus in respect of its investment into VRFB-H. As previously reported this litigation has now been resolved.



I am pleased with the vote of confidence shown by the Mustang investors to extend the deadline for the publication of the Mustang prospectus to 31 July 2022. The decision of Primorus, one of the four investors into Mustang, to exercise the Backstop arrangement is noted and respected. We are appreciative of the agreement to receiving the BMN CLN in return for its Mustang CLN. The BMN CLN has been designed to limit any potential overhang on the BMN share price by structuring any conversion in six equal tranches over a period of 18 months."

Update on the VRFB Holdings Limited ("VRFB-H") investment by Mustang Energy Plc ("Mustang")



Bushveld Minerals Limited (AIM: BMN), the AIM-quoted, integrated primary vanadium producer and energy storage solutions provider, with ownership of high-grade assets in South Africa, hereby provides a further update, following the announcement on 25 March 2022.

1. Bushveld, Mustang, VRFB-H, Bushveld Energy Limited and Acacia Resources Limited entered into an Amendment Deed relating to the Investment Agreement dated 26 April 2021 and as amended and restated on 18 January 2022, in terms of which the date by which the Mustang CLNs noteholders must exercise of the Backstop arrangement was extended to five business days of 31 July 2022 (if Mustang is not readmitted to listing and trading on the Standard List of the London Stock Exchange ("LSE") by 31 July 2022);

2. Bushveld issued a convertible loan note ("BMN CLNs") to Primorus Investments Plc ("Primorus") on 28 March 2022 pursuant to the previously announced Backstop arrangement with Primorus and Mustang. The conversion mechanism for the BMN CLN was set out in the Company's announcement on 19 January 2022 and the relevant supplementary details are as follows:

· The nominal amount of the BMN CLNs is £1,208,988, being the nominal value of the Mustang CLNs issued to Primorus of US$1.5 million plus interest accrued thereon as at 28 March 2022 of US$136,849.32 (being an aggregate amount of US$1,636.849.32), converted at an exchange rate of US$1.3539/GBP;

· Unless previously redeemed by the Company, and subject to a conversion notice being received by the Company at least three business days prior to the relevant conversion date, a tranche consisting of one sixth of the aggregate amount of the BMN CLNs may be converted by Primorus into BMN shares at any time within a conversion period (the six conversion periods being: 28 February 2022 to 14 April 2022; 15 April 2022 to 14 July 2022; 15 July 2022 to 14 October 2022; 15 October 2022 to 16 January 2023; 17 January 2023 to 14 April 2023;15 April 2023 to 14 July 2023) at a conversion price of £0.098987, being the volume weighted average price of a share as shown on Bloomberg over the 20 trading days prior to (and excluding) 28 February 2022.

3. Mustang has cancelled the Mustang CLNs issued to Primorus on 26 April 2021 and issued US$1,500,000 10 per cent convertible loan notes to Bushveld, subject to and with the benefit of the provisions contained in the Loan Note Instrument entered into by Mustang on 26 April 2021 as amended and restated on 18 January 2022 and as further amended and restated between Mustang and the CLNs noteholders on 28 March 2022. The conversion price of the Mustang CLNs is £0.18; and

4. Mustang will pay Bushveld a Backstop Fee of US$32,737

Apologies for embarrassing typo!

Lamps you have as much write to post here as anyone else. Please exercise that right whenever you like.

Regards. Pdub.

Disgruntled your point is?

As you well know BMN was listed on AIM in 2012 but didn’t become a producer until 2017 when it acquired a share of Vametco.

AIM was designed for start ups to raise capital more easily. As far as BMN is concerned it worked. How else did you expect a junior miner to survive without revenue?

However unlike many wannabe AIM miners BMN actually acquired a mine and processing plant at a knock down price. The dilution 2017 through 2018 led to acquisition of Vametco amongst other developments, which in turn resulted in Massive profits in 2018 following the V price rise, and laid the foundation of today’s company.

As I said earlier dilution since becoming a producer has been minimal. Stop being grumpy and celebrate this fact.

Just my opinion.

There is some very questionable negative about shares issued by BMN
being spread by some contributors to this bb. This needs to be challenged.

Some facts.

Shares in issue Nov 2018 … 1,119,057,953
Shares in issue Feb 2022 … 1,261,299,177

So in 3 years and 3 months the number of shares in issue has increased by only 12.7%. By AIM standards that is nothing yet some people are complaining. Good grief.

During this period the commodity price (Vanadium) crashed, heavily impacting revenue and profit, yet BMN continued their expansion plans including the acquisition of Vanchem and made various investments with partners, started the building of the electrolyte plant, etc. And they achieved all of this with the addition of only 12.7% more shares over 3 years and 3 months.

Get real you lot. They have done really well to keep dilution to such a low level for an AIM growth company.

No one likes dilution. However when it is for expanding production and growing the business it is a necessary evil that can bring significant long term benefits, which in my opinion is exactly what BMN have achieved.

So Sister you don’t think sorting out unreliable production at Vametco, BMNs main Vanadium production site, in the spring of 2021 and then maintaining production to target for rest of year represents progress. I strongly disagree. It is probably the most important step they could have taken.

You don’t think beginning construction of the electrolyte plant in 2021 and targeting a commissioning in 2022 is progress. I strongly disagree.

You don’t think maintaining a consistent level of production at Vanchem throughout the year is progress. I strongly disagree.

You don’t think that work on a second kiln and announcing its commissioning in 2022 is progress. I strongly disagree.

You don’t think reducing costs at Vametco as has been reported in the Q Updates is progress. I strongly disagree.

I could go on but I will summarise by saying you think there has been a lack of progress in 2021. I strongly disagree.

Clearly you don’t look beyond the day to day share price. That is your right but it would seem that you are blinkered to the actual progress the company has made in 2021 towards its target of building a large low cost vertically integrated vanadium platform. Those developments will contribute to building the foundation for future share price growth, with the additional benefit of increasing V prices and potential BE announcements to come.

Just my opinion.

Sister yes you are correct.

One must assume therefore that the BoD consider this to be in the best interests of the company. Some may not like that but it amounts to about 1% dilution and BMN retain cash in the bank. Hardly something to get one’s kn*ckers in a twist over!

Remember Q2 begins with very high V prices. Why don’t you folks make more of a fuss about that VERY positive start to the Q? It is going to be way more important than a few shares issued.

Just my opinion.

Who chose? Didn’t Primorus have the option to take shares as per the deal?

Disgruntled I am puzzled. You blame BMN for everything.

However it was Garnet who tried to use the courts to get their own way. The other parties including BMN successfully defended the case.

It was Garnet who caused the long delay. Not BMNs fault.

It was Primorus who bailed out. Not BMNs fault.

The backstop arrangement had to be put in place for just such eventualities in order to put the whole deal together, and Primorus are exercising their rights under that agreement. Not BMNs fault. They appear simply to be honouring contractual obligations.

Criticise by all means if you wish but please keep the criticism proportional and fair.

Just my opinion.

Alfredh I love your comments. They make me smile every time.

Utter nonsense of course … but fun nevertheless.

Just my opinion.

Daisydog ref “Anyone (except pdub) really believe the management are doing a good job now?”

Isn’t that a rather pointless question given that there is much positivity on this bb, that whilst we have a seller (s?) there are an awful lot of buys going through, and presumably you think these buyers believe Fortune is doing a bad job as you suggest I am the only one that supports the management. I don’t wish to be rude but I can’t come to any other conclusion than to think that your question is rather silly. Sorry but that is what I think.

Sistersoffate you may need to do better research. Anyone with anything but superficial knowledge of pricing of BMN products will know that there is a lag of perhaps a month between the V price and BMN charging that for its product. Therefore the large rise in V price in March will work its way into BMN prices in April onwards, ie Q2 is looking very very good already.

The significance of this is that whilst revenues are going to rise rapidly over the next month or so, currently it may suit BMN to settle with Primorus in shares, and I believe they have that option anyway. In return don’t we get a larger share of Enerox, a VRFB company, just as the VRFB market starts to take off and with renewed pressure globally to move away from hydrocarbons to renewables plus battery storage? That sounds rather good to me, and absolutely in line with BMNs vision of creating a large low cost vertically integrated Vanadium platform. Always good to keep the big picture in mind.

No doubt some will try to create a negative storm today but it really isn’t anything to be concerned about and nothing we didn’t already know about. The traders might have a bit if fun then life will return to normal.

Just my opinion.

hxulcolrdoh the worst form of abuse on a bb is misinformation.

Following the maintenance shutdown down in March production has generally been very consistent, despite Covid etc.

The revised target was 3400 - 3600 mtV for 2021. They actually produced 3592 mtV. That is excellent.

There are many reasons why any one quarter may vary, including variation in ore grade. Overall consistency has been achieved and so has target. Q4 numbers were slightly down on Q3 but nothing to get excited about. It should now be about realising longer term targets and they seem to be on track to do that.

Let’s not start inventing negative stories please.

Diamondlover I am sure many share your frustration with the CLNs issued. However think on this.

The timing of the sale of Vanchem was completely beyond BMNs control. At the time the V price was low and if my memory serves me well it was still falling. This was simply too good an opportunity to miss. Remember there are only 4 primary Vanadium plants, one in Brazil and three in SA. The chance of acquiring a second plant was unlikely to happen again. They had to take it.

The problem was that with the low V price there simply wasn’t the cash to do the deal. They did get a further reduction in the price but still had to offer the option of shares for cash. Long term I am sure this will prove to be a master stroke of a deal but short term shareholders may feel some pain, assuming Duferco have sold / are selling some shares.

The acquisition of Vanchem is worth every $ it cost. It has unlocked the potential for great expansion of production and diversification of products. BMN will gain a much larger market share of Vanadium sales. This can only be good news for shareholders over the next few years. Am I not correct that since the acquisition Vanchem was valued significantly higher than the purchase price.

Hopefully if V prices remain high BMN will be able to self fund future expansion.

Just my opinion.

Thank you Lucan. I will have a look.

Kind regards. Paul

Beginerman first I think that you are wrong. The V price has influenced the sp. that is why it rose from 9p to where it is today.

Why hasn’t it risen further? Most likely because Duferco (and possibly others of course) are selling into it. I don’t believe Duferco ever intended to be longterm holders of BMN stock. Why? They sold the entire first batch within the year. Now it looks like they are doing the same second time around.

I don’t believe this has anything to do with BMNs prospects. Fact is Duferco I think would have wanted cash payment for Vanchem. That was not achievable so they got this deal which involved part payment in shares. Next step … cash them in to bring in the cash. If they tried to dump those shares on the market at once it would trash the sp and their return would be terrible. Answer … drip feed until done. Just fast enough to generate a healthy return.

The good news is that there are plenty of buyers for these shares as we see every day. To me that means that the real market is quite positive towards BMN. And so they should be!

Just my opinion of course.

Duferco are not an investment company. They took shares as part payment for selling an asset. Like any business they need cash flow. Why would they sell is the wrong question. You should ask why wouldn’t they sell?

And why did they get the restrictions on selling removed from the deal if they weren’t going to sell. Come on … it’s not rocket science.

And today we find out that by end Feb their holding was down 11 million.

Believe whatever you like but I am convinced they have sold more and are still doing so. Time will tell.

And yes if they are selling down I want it done ASAP. Get the overhang out of the way and let proper market forces push the sp up.

Just my opinion.