Aim-listed Bushveld Minerals has raised $18.4-million, or £14.6-million, through a placing and direct subscriptions with the company by Southern Point Resources (SPR), Acacia Resources, Orange Trust and certain directors.
“We are pleased by the response from investors to this capital raise, which was achieved at a 33% premium to the current market price. The capital raise will allow us to fund capital expenditure at Vametco and Vanchem to increase production, strengthen the balance sheet, and facilitate restructuring the Orion Financing Package,” says CEO Craig Coltman.
Bushveld will issue 486-million new ordinary shares at a price of 3p apiece, upon shareholder approval, on or about December 27. The company encourages shareholders to vote in favour of the placing and subscription.
Bushveld directors Kevin Alcock, Michael Kirkwood and Coltman have opted to subscribe for 2.7-million subscription shares worth £82 750 as part of the fundraising.
Acacia will subscribe for about 92-million shares and SPR for 330-million new shares.
Bushveld is also launching a retail offer through PrimaryBid to raise up to £2-million.