Bushveld Minerals Raises USD22 Million In Equity Placing (ALLISS)

26th Mar 2018 18:18

LONDON (Alliance News) - South African vanadium producer Bushveld Minerals Ltd said Monday that it has raised USD22.2 million through an oversubscribed equity placing.

The company placed 152.7 million new ordinary shares at a price of 10.30 pence per share. Shares in the company closed at 12.49p, down 4.8%.

Bushveld intends to use around USD20.9 million of proceeds to redeem USD6.3 million outstanding Atlas Capital convertible bonds, simplify organisational structure and support its vanadium expansion programme.

Bushveld is looking to expand its vanadium reserves and resources at the Vametco mine and Brits Project for future production and support Vametco's expansion plans to increase production to more than 5000 million tonnes vanadium and beyond.

The placing was led by a consortium of investors, including the original founders of Mimosa Platinum and LionOre Mining International, as well as the early investors in Mantra Resources.

SP Angel Corporate Finance LLP and Alternative Resource Capital, a trading name of Shard Capital Partners LLP, acted as joint brokers for the placing.

Fortune Mojapelo, Bushveld Chief Executive, said "The capital raise will allow us to improve our capital and corporate structure and enhance the company's proximity to its underlying cash generating assets as we continue to develop our growth opportunities."

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