Bushveld Minerals Regulatory News (BMN)

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Financing for Vametco acquisition complete

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 Bushveld Vametco Limited ("BVL") has signed the final elements of the financing agreements (the "Agreements"), in support of the acquisition from Evraz Group S.A ("Evraz") of a 78.8% shareholding interest in Strategic Minerals Corporation ("SMC") (the "Acquisition"), with Barak Fund SPC Limited ("Barak") (the "Barak Financing").

The Barak Financing comprises the following facilities:

· A bridge loan facility of up to US$11 million ("Bridge Loan"), repayable within 2 months of drawdown, to fund the Acquisition; and

· An inventory financing facility of up to US$7 million ("Inventory Facility") to the SMC subsidiary, Evraz Vametco Alloys Proprietary Limited ("Vametco"), to monetise Vametco's inventory of finished NitrovanTM ready for distribution to customers. The Inventory Facility has a term of six months and will allow Vametco to monetise its inventory of finished goods and provide it with additional cash resources which would otherwise have only been received once deliveries to customers are successfully completed.

The Bridge Loan will attract a total of US$939,077 in interest, fees and legal charges.

BVL intends to refinance the Bridge Loan following completion of the Acquisition and discussions are advanced in this regard. There is no expectation that any refinance will be completed through an equity issue.

Together, the Barak Financing and the Financing and Sales and Marketing Agreement with Wogen Resources Limited (as announced on 20 March 2017) (the "Wogen Financing") ensures that BVL can complete the Acquisition in a manner consistent with its stated aim to minimise dilution to its shareholders, while simultaneously ensuring that, in addition to cash resources it holds, Vametco has working capital financing of up to US$13 million, comprising:

· The Inventory Facility, of up to US$7 million, to finance already produced finished goods/inventory from Barak; and

· The Wogen Financing, of US$6 million, to finance on-going production.

The following items of security have been provided by BVL in connection with the Barak Financing:

· A charge over the SMC shares being acquired and related rights;

· Cession of dividends owed from SMC to BVL; and

· Bushveld, Yellow Dragon and BVL have agreed to guarantee BVL's payment obligations under the Bridge Loan.

The signed Agreements with Barak are conditional, inter alia, on the successful completion of the Share Purchase Agreement between BVL and Evraz. The Barak Financing, together with the Wogen Financing and the injection of US$800,000 by Bushveld and Yellow Dragon, completes the financing required for the Acquisition.

Bushveld was advised by Meraki Capital on the Barak Financing.

Further updates will be provided as appropriate.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the Barak Financing, "We are pleased to partner with Barak to assist with the funding of the Acquisition. This will help unlock the cash flows of the operations of Vametco through working capital financing focused on the finished goods inventory.

"The Barak Financing completes the funding package for the acquisition of SMC whilst providing additional cash resources to the operation being acquired. We are particularly pleased to have completed the funding package in a manner consistent with our stated aim to minimise unnecessary dilution to shareholders.

"We look forward to working together with Barak, in addition to Wogen Resources Limited, as we leverage the production platform of Vametco to build a deeply integrated vanadium platform."

BRR Media Interview Link

Please find below a link to an interview with BRR Media on this announcement.

https://www.brrmedia.co.uk/broadcasts-embed/58dbbc94e742d95c634a1f99/event/?livelink=true

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