Wogen increases Bushveld’s working capital facility to $11m

24th August 2017 By: Creamer Media Reporter

JOHANNESBURG (miningweekly.com) – Wogen Resources has agreed to further increase the working capital facility extended to diversified miner Bushveld Minerals’ Bushveld Vametco subsidiary from $9-million to $11-million.

Bushveld Minerals on Tuesday announced that its susidiary would retire a $3-million prepayment facility due to Wogen, while Wogen had also agreed to extend the working capital facility, to be used at the Vametco Alloys operation, near Brits, by $3-million to $9-million.

“Both this and the earlier facility amendment relieves Bushveld Vametco's operations from the fixed debt commitment of the (now retired) prepayment facility and avails of additional cash resources backed by inventory shipments in a rising vanadium market,” Bushveld Minerals CEO Fortune Mojapelo said on Thursday.

The facility, which is an inventory and receivable financing, is in place to optimise the operating position of Vametco Alloys.