JOHANNESBURG (miningweekly.com) – Diversified mineral development company Bushveld Minerals’ Bushveld Vametco subsidiary has agreed with Wogen Resources to retire the $3-million prepayment facility entered into, in March, to help fund the acquisition of a 78.8% interest in Strategic Minerals Corporation (SMC) from Evraz Group.
SMC is the holding company of the Vametco Alloys operation, near Brits, which has the capacity to produce about 3 000 t of vanadium in the form of Nitrovan – a vanadium product used in the steel industry – and modified vanadium oxide.
The $3-million prepayment facility was due to be repaid only by the end of 2018, but Bushveld Minerals took the decision to retire the facility sooner and expand the Vametco Alloys working capital facility by $3-million to $9-million, to “ensure greater flexibility in the financing of product sold”.
Wogen will continue to market Vametco's Nitrovan product globally on an exclusive basis, with the exception of Japan and Taiwan, which are covered exclusively by Sojitz Noble Alloys Corporation, the minority partner in SMC.
“The retirement of the prepayment facility at such an earlier point than initially anticipated is testament to the quality of Vametco's operations and the extent to which the vanadium market has strengthened in the past year.
“Wogen continues to be a supportive and beneficial partner and its increase in the working capital facility . . . , we believe, demonstrates their confidence in Bushveld Vametco's strategy and vision going forward,” Bushveld Minerals CEO Fortune Mojapelo commented on Tuesday.
Bushveld Minerals is listed on the Aim and owns a portfolio of vanadium, titanium, iron-ore, tin and coal assets in Southern Africa.