JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals has raised £750 000 through the placement of 53.6-million new ordinary shares at 1.4p apiece.
The diversified minerals development company will use the proceeds from the placing, which was coordinated by Beaufort Securities, for general working capital purposes while it finalises financing for the Vametco transaction, which is expected to be majority funded through debt.
“We are pleased to successfully complete this placing, without the need for a roadshow, owing to existing demand at this exciting time from both existing and new investors ahead of finalising of the Vametco transaction, which we look forward to updating the market on in the coming months,” said Bushveld CEO Fortune Mojapelo in an update to shareholders on Friday.
In May, Bushveld signed a share purchase agreement to buy Evraz Highveld Steel & Vanadium’s 78.8% stake in Strategic Minerals Corporation, which holds the Vametco vanadium mine and processing plant, in the North West province.
The company and its financing partner Yellow Dragon have established a 45:55-owned special purpose vehicle to acquire the Vametco assets for $16.4-million.
Beaufort Securities has been issued 5.35-million warrants exercisable at 2.8p and with an expiry period of three years from the date of issue.