FURTHER UPDATE ON OUTSTANDING FUNDS-BUSHVELD MINERALS LIMITED

FURTHER UPDATE ON OUTSTANDING FUNDS-BUSHVELD MINERALS LIMITED

 

Further Update on Outstanding Funds

 

 

Bushveld Minerals Limited (AIM: BMN), the primary vanadium producer, announces that the Company has received a further ZAR56.3 million (~US$3.0 million) from Southern Point Resources' ("SPR"), as a loan on an interest-free basis. The Company has now been loaned the full amount due of US$12.5 million on an unsecured, non-refundable, interest-free basis by SPR (the "Loan").

 

The Loan will be settled once either SPR provides Bushveld with the US$12.5 million subscription monies in the United Kingdom, pursuant to the SPR subscription agreement (the "Subscription Agreement"), or through an alternative South African Reserve Bank ("SARB") approved settlement structure. The monies received today have been paid from SPR's bank account in South Africa to Bushveld's bank account in South Africa. Exchange laws in South Africa require SARB approval to remit local funds offshore, being the complicating factor.

 

The Company remains engaged with SPR whilst SPR completes the formalities to  finalise the Subscription Agreement. The subscription monies owed to Bushveld remain classified as a short-term receivable on the balance sheet but are offset by the same amount as a short term payable in a subsidiary until such time as the loan is settled.

 

 Craig Coltman, CEO of Bushveld Minerals commented:

"The receipt of this cash enables the Company to reduce creditor balances whilst we continue to implement the necessary initiatives to improve operational performance at Vanchem and Vametco."

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