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Bushveld Minerals Ltd on Friday said it agreed to a $45 million convertible loan note refinancing with Orion Mine Finance.
Bushveld shares were up 20% to 4.35 pence each in London on Friday morning.
The South Africa-focused vanadium production company said it will refinance around $45 million due in November into three components, including a $27 million three-year term loan, new CLN of $13.5 million maturing in 2028, and conversion of $4.5 million of existing CLN into shares at 6p each.
In 2020, Bushveld had agreed to a $65 million financing transaction with Orion, which included a $35 million convertible loan note, originally intended to finance plans at its Vametco plant. This was later amended to fund the expansion of its Vanchem facility in South Africa.
Bushveld said the outstanding balance for the convertible loan facility is expected to be around $45 million by the end of the second quarter of 2023.
Chief Executive Officer Fortune Mojapelo said: ‘The proposed refinancing will resolve a large liability that became current in 2023 and will remove significant near-term pressure on the company’s balance sheet, in the process supporting sustainable growth and cash generation of our business.’
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