RNS22 May 2019 09:17
AfriTin Standby Working Capital Support Financing
Wed, 22nd May 2019 08:03
RNS Number : 8184Z
Bushveld Minerals Limited
22 May 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
22 May 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
AfriTin Standby Working Capital Support Financing
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa announces that it has agreed to provide a short-term standby working capital support facility to AfriTin Mining Limited ("AfriTin") to the sum of ZAR30,000,000 (approximately US$2.1 million) ("Standby Facility"). Bushveld Minerals spun-off its non-core tin business in 2017 to create AfriTin and currently holds 9.5 per cent of the issued capital of AfriTin as available for sale.
The 12-months facility is meant to fund AfriTin's working capital requirements leading to expected tin mine commissioning this year, and subsequent longer-term refinancing. The Standby Facility is secured against a general notarial bond over the AfriTin's processing plant at Uis project.
The Facility may only be drawn down by AfriTin subject to the following conditions:
· AfriTin can reasonably demonstrate to the Company that it anticipates the generation of revenues which will enable it to repay the amount drawn down in full.
· AfriTin furnishes the Company with evidence it has succesfully completed an equity fundraising by way of a direct subscription of 99,613,074 ordinary shares at a price of 3 pence per share to raise approximately £3 million;
· Bushveld Minerals is satisfied that AfriTin has utilised the funding available to it under the equity fundraise and that AfriTin's other available cash resources have been utilised in full;
· Bushveld Minerals is satisfied that ATM does not have positive cash flow (determined in accordance with the same accounting principles applied by AfriTin during the 6 months prior to the Signature Date);
· The Standby Facility shall be used by AfriTin exclusively for the reconfiguration of the installed pilot plant tin production circuit at its Uis tin project in accordance with the Bushveld Minerals reviewed technical plans to commision a mine at Uis project.
Interest on the Standby Facility accrues at a rate of 12.5 per cent per annum (payable quarterly) on drawn amounts, and a facility fee equal to 1.0 per cent of the facility amount. The Standby Facility is repayable at any time during the 12 months term at no additional cost to AfriTin. The facility is issued at arms length terms.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented: "While we remain committed to our Board's decision to see AfriTin exist and operate as an
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