Bushveld to settle balance of $11m loan by month-end
JOHANNESBURG (miningweekly.com) – Bushveld Vametco (BVL), a subsidiary of Bushveld Minerals, has reached an agreement with financing corporation Barak Fund to restructure an $11-million bridge loan agreement – repayable within two months of drawdown – related to the acquisition of a 78.8% shareholding interest in Strategic Minerals Corporation (SMC) from Evraz Group.
Under the terms of the restructured agreement, repayment of all outstanding principal funding, interest and fees has been extended to June 30.
BVL had paid $8.8-million by May 31 and a further $1.2-million this month. The remaining $1-million, plus fees and interest, will be payable by June 30.
“We are confident of settling these final payments from internal cash flows without recourse to equity capital raises,” Bushveld said in a statement on Tuesday.
Post the end of June, BVL will only have a $3-million Wogen Resources prepayment facility left as external debt. BVL expects to repay the Wogen facility over a 15-month period, prior to the end of 2018, out of operating cash flows.
"We are delighted with the progress we have made in settling the bridge loan, which formed an essential aspect of concluding the Vametco transaction and enabled us to avoid unnecessary dilution for our shareholders.
“Acquiring SMC for less than 10% of its replacement cost, through a highly leveraged acquisition model and repaying 70% of the debt within two months of the acquisition is not a small achievement,” said Bushveld CEO Fortune Mojapelo.
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