5th May 2023 12:16
(Alliance News) - Bushveld Minerals Ltd on Friday said it agreed to a USD45 million convertible loan note refinancing with Orion Mine Finance.
Bushveld shares were up 20% to 4.35 pence each in London on Friday morning.
The South Africa-focused vanadium production company said it will refinance around USD45 million due in November into three components, including a USD27 million three-year term loan, new CLN of USD13.5 million maturing in 2028, and conversion of USD4.5 million of existing CLN into shares at 6p each.
In 2020, Bushveld had agreed to a USD65 million financing transaction with Orion, which included a USD35 million convertible loan note, originally intended to finance plans at its Vametco plant. This was later amended to fund the expansion of its Vanchem facility in South Africa.
Bushveld said the outstanding balance for the convertible loan facility is expected to be around USD45 million by the end of the second quarter of 2023.
Chief Executive Officer Fortune Mojapelo said: "The proposed refinancing will resolve a large liability that became current in 2023 and will remove significant near-term pressure on the company's balance sheet, in the process supporting sustainable growth and cash generation of our business."
By Sabrina Penty, Alliance News reporter
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