Bushveld Minerals (LON:BMN), the AIM quoted, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa, has announced that it has secured R375 million (approximately US$25 million) in debt facilities through its subsidiary Bushveld Vametco Alloys Proprietary Limited with Nedbank Limited, a South African based financial institution, in the form of a R250 million loan and a R125 million revolving credit facility.
· Key highlights of the R250 million loan:
o Five-year amortising loan;
o Interest rate calculated using the three year or six months JIBAR1 as selected by the Company plus a 3.4% margin;
o Interest payments are due semi-annually with first payment due in six months from financial close;
o Principal repayments will be made semi-annually in arrears over four years in eight equal instalments, with first payment due 18 months after financial close.
· Key highlights of the R125 million revolving credit facility:
o Three-year term;
o Interest rate calculated using the three year or six months JIBAR1 as selected by the Company plus a 3.6% margin;
o Interest payments are due semi-annually with first payment due in six months from financial close.
· The security provided is customary for a secured financing of this nature, including cession of shares in the Borrower, security over the assets of the Borrower, and a parent guarantee.
· Both facilities are subject to market related arranging and commitment fees.
1 The three month and six-month JIBAR as at 24 October 2019 is 6.78% and 7.23% respectively.
Fortune Mojapelo, CEO of Bushveld Minerals, commented:
“We are pleased to announce the successful conclusion of the debt facility discussions. The funding provides additional flexibility for our business as we advance strategic initiatives at Bushveld Vanadium and Bushveld Energy.
The Company is committed to maintaining a conservative balance sheet and believes shareholders will benefit from the improved capital structure.”
