Bushveld Minerals CEO Craig Coltman
Integrated primary vanadium producer Bushveld Minerals has entered into a conditional agreement to refinance its existing convertible loan notes with Orion Mine Finance, following the term sheet agreed in May this year.
The conditional agreement extends the maturity date for Bushveld's existing convertible loan notes to January 31, 2024, from December 21, this year, and refinances the convertible debt obligations of about $46.9-million.
The refinancing is conditional upon approval by Bushveld's shareholders; the raising of at least $12-million through the issue of new ordinary shares in Bushveld to third-party and existing shareholders; consent by the Financial Surveillance Department of the South African Reserve Bank; and completion of the share exchange transaction between Bushveld and the minority shareholders in Bushveld Vametco Holdings.
"I am pleased to announce today's agreement with Orion, which has supported the company since its initial investment three years ago. Since first announcing the terms of the proposed restructuring earlier this year, there has been an imperative to enter into a binding agreement with Orion, and while the refinancing remains conditional upon certain items, including Bushveld shareholders' approval, it provides certainty as we move forward with the other elements of our financial package.
"The restructuring is a key part of our strategy to restore value in the company, along with ensuring Bushveld delivers its operational targets, simplifies its corporate structure and refines its investment proposition," comments Bushveld CEO Craig Coltman.