Bushveld Minerals Regulatory News (BMN)

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Financing and Sales and Marketing Agreement signed withWogen Resources Limited ("Wogen")

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 on Friday 17 March 2017 it signed a definitive Sales and Marketing Agreement with Wogen Resources Limited (the "Agreement").

This assists with the financing required for the conditional acquisition by Bushveld Vametco Limited ("Bushveld Vametco") of a 78.8% interest in Strategic Minerals Corporation ("SMC") from Evraz Group SA ("Evraz") (the "Acquisition Transaction"). 

Bushveld Vametco has previously provided the required proof of funding to Evraz, in the form of signed term sheets, to secure funding for the Acquisition Transaction. Bushveld Vametco has now signed the Agreement with Wogen Resources Limited based on which Wogen will become a marketer and distributor of Vametco Alloys Limited's NitrovanTM production (the "Product") and provide financing to the Bushveld Vametco Group ("Wogen Financing").

The Wogen Financing comprises a US$3.0 million Product prepayment as part of the acquisition debt package for the Acquisition Transaction and inventory and receivable financing of US$6.0 million to optimise the position of the operations of Vametco Alloys. The Agreement provides for full repayment of prepayment facility by the end of 2018, notwithstanding it being repayable on demand. The overall term of the Agreement is five years, renewable by mutual agreement and Wogen will market the Product globally on an exclusive basis, with the exception of Japan and Taiwan which markets are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in SMC. Bushveld has agreed to guarantee Bushveld Vametco's payment obligations under the Agreement.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the Wogen Agreement, "We are pleased to welcome Wogen as a long term partner for the sales, marketing and distibution of NitrovanTM post completion of the Transaction. The Wogen Agreement not only takes us a step closer to completing the transformational acquisition of SMC but also provides important working capital finance for Vametco Alloys. We look forward to a fruitful and mutually beneficial relationship based on Wogen's extensive experience in commodities trading and distribution across a range of commodity markets including vanadium, servicing customers across the globe."

John Craig, CEO of Sanctuary Partners Limited, the parent company of Wogen Resources Limited commented, "We at Wogen are particularly pleased to be assisting Bushveld Vametco with this exciting acquisition and in supporting the company through the development of sales and distribution of its products on a global basis into the future".

The signed Agreement with Wogen is conditional, inter alia, on the successful completion of the Share Purchase Agreement between Bushveld Vametco and Evraz.

As part of the Agreement, Wogen will receive 15,000,000 Bushveld warrants, each of which entitlies Wogen to subscribe at any time during the subscription period of three years in cash for one ordinary share in the capital of Bushveld Minerals Limited at the subscription price of 7.0 pence.

Further updates will be provided as appropriate.

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: info@bushveldminerals.com

Bushveld Minerals Limited

Fortune Mojapelo +27 (0) 11 268 6555

Strand Hanson Limited (Nominated Adviser)

Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494

Beaufort Securities (Joint broker)

Jon Bellis +44 (0) 20 7382 8300

SP Angel Corporate Finance (Joint broker)

Ewan Leggat +44 (0) 20 3470 0470

Blytheweigh (Public Relations)

Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204

Gabriella von llle +27 (0) 711 121 907

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

ABOUT WOGEN RESOURCES LIMITED

Founded in 1972, Wogen has a long history of trading, selling, procuring and servicing customers across the globe in the field of exotic metals and minerals. The company prides itself on sourcing materials from the remotest corners of the globe and delivering them on time and competitively priced. Wogen deals in the whole range of exotic non-ferrous metals specialising in Electronic, Precious, Noble, Light and Minor Metals, Ferro Alloys and Minerals. It trades in:

· Ores and Concentrates such as Antimony, Chromium, Manganese and Wolframite;

· Metals and Oxides such as Cobalt, Magnesium, the Platinum Group Metals (PGM's and OPM's)and Tungsten;

· Ferro Alloys such as Ferro Molybdenum, Ferro Tungsten and Ferro Vanadium

· Industrial Minerals such as Rutile, Monazite and Ilmenite; and

· The full spectrum of Rare Earths.

With a dynamic trading team who are each experts in their specific fields and who collectively span the whole spectrum of metals and minerals from A to Z, Aluminium to Zirconium, Wogen services within the exotic metals and minerals arena extends to:

· Marketing and Distribution;

· Sourcing and Procurement;

· Agency;

· Logistics;

· Financing; and

· Investing.

Wogen's customers include governments, steel mills, industrial, technological and aerospace consumers, foundries, the alloying industry, miners, smelters, merchants and traders. Its active markets are worldwide but Wogen's main strengths stem from its locations in China, Hong Kong, Russia, South Africa and London.