Aim-listed vanadium producer Bushveld Minerals has successfully concluded a $35-million convertible loan note instrument with Orion Mine Finance.
Bushveld CEO Fortune Mojapelo says Orion has, once again, shown strong support for Bushveld and its growth story.
“While we did receive widespread interest from other investors in the instrument, Orion’s willingness to upsize its investment in line with the terms of its existing commitment made them the natural investor for the entire $35-million.
“We welcome this vote of confidence in Bushveld. Importantly, we have agreed a 17p conversion price with Orion, representing a premium of about 39% to the Bushveld closing share price as at November 6, to limit dilution to existing shareholders.”
Orion initially agreed to subscribe for between $10-million and $20-million of convertible loan notes.
The issue of the convertible loan notes coincides with a $30-million long-term production financing agreement that Bushveld signed with Orion in September.
Under the financing agreement, Bushveld can draw a minimum of $10-million and a maximum of $35-million.
Between the drawdown and the instrument’s maturity date, Orion may convert an amount of the outstanding debt, including interest, into Bushveld ordinary shares, at the conversion price of 17p.
Bushveld will host a general meeting of shareholders on November 27 to propose the necessary resolutions to issue the additional shares.
The proceeds will go towards the Vanchem critical refurbishment programme.
Vanchem is a vanadium-producing facility in Mpumalanga, South Africa. Expanding Vanchem’s capacity will enable Bushveld to produce about 10 000 t/y of vanadium.