Bushveld to settle balance of $11m loan by month-end
JOHANNESBURG (miningweekly.com) – Bushveld Vametco (BVL), a subsidiary of Bushveld Minerals, has reached an agreement with financing corporation Barak Fund to restructure an $11-million bridge loan agreement – repayable within two months of drawdown – related to the acquisition of a 78.8% shareholding interest in Strategic Minerals Corporation (SMC) from Evraz Group.
Under the terms of the restructured agreement, repayment of all outstanding principal funding, interest and fees has been extended to June 30.
BVL had paid $8.8-million by May 31 and a further $1.2-million this month. The remaining $1-million, plus fees and interest, will be payable by June 30.
“We are confident of settling these final payments from internal cash flows without recourse to equity capital raises,” Bushveld said in a statement on Tuesday.
Post the end of June, BVL will only have a $3-million Wogen Resources prepayment facility left as external debt. BVL expects to repay the Wogen facility over a 15-month period, prior to the end of 2018, out of operating cash flows.
"We are delighted with the progress we have made in settling the bridge loan, which formed an essential aspect of concluding the Vametco transaction and enabled us to avoid unnecessary dilution for our shareholders.
“Acquiring SMC for less than 10% of its replacement cost, through a highly leveraged acquisition model and repaying 70% of the debt within two months of the acquisition is not a small achievement,” said Bushveld CEO Fortune Mojapelo.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
