Bushveld Minerals reaches agreement with Duferco over repayment of US$11.5mln of convertible loan no

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Bushveld Minerals Ltd (AIM:BMN, OTC:BSHVF), a vanadium producer and energy storage solutions provider, said it reached an agreement with Duferco Participations Holding SA regarding repayment of the remaining US$11.5mln of convertible loan notes.


On November 8, Duferco will convert US$9mln of the outstanding balance into new Bushveld shares, while Bushveld will repay the remaining US$2.5mln plus interest in cash.


Bushveld said the repayment agreement will reduce its debt position significantly while also making a material reduction at the net debt level given that most of the repayment will be made using its shares.


“This will be the final payment of our US$53.5mln acquisition, two years ago, of Vanchem, the remaining primary vanadium processing plant in South Africa (and one of only four such operational plants in the world),” said Bushveld chief executive Fortune Mojapelo.


“The acquisition structure, which comprised US$30.5mln in cash and US$23mln in the form of a 2-year convertible loan, allowed us to complete the important acquisition at a time, in November 2019, of falling realised vanadium prices.”

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