Bushveld's Vametco operation
Aim-listed vanadium producer Bushveld Minerals has recieved an additional R76-million, or $4-million, from Southern Point Resources (SPR) in respect of a subscription agreement; however, SPR remains in default.
The companies earlier this year announced an agreement whereby SPR would transfer $12.5-million from an offshore bank account into Bushveld’s UK bank account; however, the payments received to date have been paid into a Bushveld subsidiary’s bank account in South Africa from SPR’s bank account in South Africa.
If the $6-million received to date were to be used to satisfy SPR's obligation under the subscription agreement, the approval of the South African Reserve Bank would have been required, which would have resulted in further delays in the flow of funds.
Until the entire $12.5-million is received, SPR remains in default of the subscription agreement, Bushveld says.
Bushveld has only received R116-million, or $6-million, from SPR as an interest-free loan.
SPR plans to pay the full $12.5-million no later than February 28.
Bushveld lost 11 and 3 days of production in January at its Vanchem and Vametco operations, respectively, owing to the delayed settlement. Vametco is undergoing a maintenance shutdown and is expected to restart shortly, while Vanchem is operating at near full capacity.
The board continues to monitor the situation closely and is working with its creditors and stakeholders to manage the financial condition of the company.