Mining Weekly

JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals has secured a definitive sales and marketing agreement with Wogen Resources to aid the financing of Bushveld Vametco’s acquisition of a 78.8% interest in Strategic Minerals Corporation (SMC) from Evraz.

Bushveld Minerals announced on Monday that the five-year renewable agreement also provided working capital finance for Vametco Alloys.

The Wogen financing comprises a $3-million product prepayment as part of the acquisition debt package for the acquisition, and inventory and receivables financing of $6-million, to optimise the position of the operations of Vametco Alloys.

The agreement will see Wogen become a global marketer and distributor of Vametco Alloys’ nitride vanadium, or nitrideNitrovan, production, excluding in Japan and Taiwan, and provide financing to Bushveld Vametco Group.

“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,” said Bushveld Minerals CEO Fortune Mojapelo.

The agreement, which provides for full repayment of the prepayment facility by the end of 2018, is conditional on the successful completion of the share purchase agreement between Bushveld Vametco and Evraz.

Further, as part of the agreement, Wogen will receive 15-million Bushveld warrants, each of which entitles 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 at the subscription price of 7.0p.