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Monday, November 30, 2020 - 7:08:20 PM
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Mining News Pro - Bushveld Minerals has satisfied the conditions to draw down $30-million under a production financing agreement (PFA) and the unsecured convertible loan notes of $35-million, to be subscribed by Orion Mine Finance.
First announced in September, the company is in the process of drawing down funds under the PFA and has given notice to Orion to draw down on the full amount of $35-million under the notes.
In terms of the PFA transaction, Bushveld will repay the principal amount and pay interest via quarterly payments determined initially as the sum of a gross revenue rate (set at 1.1% for 2020 and 2021 and 1.4% from 2022 onwards) multiplied by the gross revenue for the quarter; and a unit rate of $0.443/kgV, multiplied by the aggregate amount of vanadium sold for the quarter.
Once Vametco reaches vanadium sales of about 132 020 t during the term of the facility, the gross revenue rate and unit rate will reduce by 75% (to 25% of the applicable rates).
On each of the first three loan anniversaries, Bushveld has the option to repay up to 50% of both constituent loan parts (each may only be repaid once). If Bushveld uses the loan repayment option, the gross revenue rate and/or the unit rate will reduce accordingly.
The PFA capital will provide funding to continue to grow production at Vametco to more than 4 200 t/y production level and debt repayment.
In terms of the convertible loan notes, the company will raise a total of $35-million through the issue of the notes pursuant to the related convertible loan instrument.
The notes will be issued in one tranche, in December, upon receipt of funds by the company. The notes are convertible by the holder into Bushveld ordinary shares of 1p each in the company at a price equal to 17p.
Between issue and the maturity date, Orion may choose to convert an amount of the outstanding notes, including capitalised and accrued interest, into Bushveld ordinary shares.
The proceeds raised from the issue of the notes will be applied towards capital investment purposes for the first phase of Vanchem`s critical refurbishment programme and debt repayment purposes.
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https://www.miningnews.ir/En/News/609532
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