Aim-listed Bushveld Minerals has announced that the receipt of $12.5-million funds from Southern Point Resources (SPR) under the recently announced $18.4-million equity capital raising has not yet occurred.
Until the funding is received, and to manage working capital and preserve cash reserves, the vertically integrated primary vanadium producer has had to constrain production, suspend certain operational activities and defer creditor payments.
The company may also have to consider suspending operations if further payment delays occur.
SPR and its capital providers continue to confirm that the funds will be forthcoming, having been impacted by administrative, procedural, and holiday period delays, Bushveld informs.
Bushveld has, as previously announced, issued a letter of demand to SPR for the contractual outstanding funds.