Bushveld Minerals (BMN.L) Repayment of Duferco convertible loan note

Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage solutions provider with ownership of high-grade assets in South Africa, is pleased to announce the final terms for the repayment of the US$11.5 million unsecured convertible loan notes held by Duferco Participations Holding S.A. (“Duferco”).

On 18 December 2020, the Company announced that the US$11.5 million remaining balance of the Duferco convertible notes was due for payment on 8 November 2021. Further to the announcement on 21 October 2021 that progress has been made in negotiations with Duferco regarding the remaining balance of US$11.5 million of the convertible loan notes, the Company is pleased to announce that agreement has now been reached to the effect that on 8 November 2021:

(i) Duferco will convert US$9 million of the principal outstanding under the loan notes into new ordinary shares of Bushveld; and

(ii) the Company will repay the balance of US$2.5 million, together with accrued interest on the notes of approximately US$0.512 million in cash, to Duferco.

The terms of conversion remain the same as previously announced by the Company, being at a five per cent discount to the prevailing 10 day volume weighted average share price of ordinary shares of Bushveld leading up to the date of conversion. There is no lock in or orderly marketing period for the shares issued.

The Company has also agreed to pay, on Duferco’s behalf, working capital adjustment and deferred business completion payment amounts owing to Duferco Vanadium Alloys Proprietary Limited and Duferco Vanadium Proprietary Limited in terms of the Business and Share Purchase Agreement entered into between Bushveld, Duferco and others announced on 1 May 2019 in an aggregate amount of approximately US$2.2 million payable in South African Rands (ZAR32,006,496).

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

“I am pleased that Duferco will convert US$9 million of the principal outstanding under the loan notes into Bushveld Minerals shares, which will reduce our debt position significantly while also making a material reduction at the net debt level given that most of the repayment will be made using Bushveld shares.”

“This will be the final payment of our US$53.5m acquisition, two years ago, of Vanchem, the remaining primary vanadium processing plant in South Africa (and one of only four such operational plants in the world). The acquisition structure, which comprised US$30.5m in cash and US$23m in the form of a 2-year convertible loan, allowed us to complete the important acquisition at a time, in November 2019, of falling realised vanadium prices that went on to average US$23/kgV in 2020. Yet, our conviction in the strategic importance of this asset to the Company’s quest to establish a significant low cost vertically integrated vanadium platform continues to grow, even as we progress the refurbishment plan to raise Vanchem’s production run rate levels to 2,600 mtV by the end of 2022, in the process diversifying our vanadium product portfolio while significantly improving Vanchem’s cost position.”

ENDS

Enquiries: info@bushveldminerals.com

Bushveld Minerals Limited

+27 (0) 11 268 6555

Fortune Mojapelo, Chief Executive Officer

Andrew Mari, Investor Relations

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a low-cost, vertically integrated primary vanadium producer. It is one of only three operating primary vanadium producers, owning 2 of the world’s 4 operating primary vanadium processing facilities. In 2020, the Company produced more than 3,600 mtV, representing approximately three per cent of the global vanadium market. With a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors, the Company participates in the entire vanadium value chain through its two main pillars: Bushveld Vanadium, which mines and processes vanadium ore; and Bushveld Energy, an energy storage solutions provider. Bushveld Vanadium is targeting to materially grow its vanadium production and achieve an annualised steady state production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a by the end of 2022, from projects currently being implemented. Beyond that, pre-feasibility studies are in progress to determine the optimal path to increase production even further to a steady state production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in the medium-term and to a steady state production run rate of 8,400 mtVp.a in the long term.

Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through the advancement of vanadium-based energy storage systems, specifically Vanadium Redox Flow Batteries (“VRFBs”).

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com

About Vametco

Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces mostly Nitrovan, a trademark product sold in major steel markets across the world. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine (“ROM”) ore feed to the Vametco plant.

The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.

ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrates are fed into the extraction process which includes the kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide (“MVO”) in rotary calciners. MVO is fed into the mix plant and finally into the shaft furnaces to produce Nitrovan.

About Vanchem

Vanchem is situated at Ferrobank Industrial Park in Emalahleni Local Municipality, Mpumalanga Province in the Republic of South Africa. Vanchem is a primary vanadium producing facility with a beneficiation plant capable of producing various vanadium oxides, ferrovanadium and vanadium chemicals. Vanchem uses the salt roast beneficiation process, similar to the one used at Vametco. The plant comprises: a core salt-roast processing plant, including 3 roasting kilns, an electric smelting ferrovanadium converter, an alumino-thermic smelting facility, also located at Highveld, a vanadium chemical plant; and a rail siding linking the plant with Bushveld deposits and additional potential supply sources through the national rail network.


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