Bushveld Minerals Ld - Circular and Notice of GM

Market Abuse Regulation ("MAR") Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

9 November 2020

Bushveld Minerals Limited

("Bushveld Minerals", "Bushveld" or the "Company")

Circular and Notice of General Meeting

Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage provider, with ownership of high-grade assets in South Africa, announces that, further to the announcement made today, the Company has published a Circular (the "Circular") in connection with the US$35 million Convertible Loan Note Instrument (the "Instrument") issued to Orion Mine Finance ("Orion").

As Orion can now subscribe for the full US$35 million of convertible loan notes under the Instrument at a conversion price of 17 pence for each new ordinary share converted, and as the exchange rate is determined at the time of conversion, the Directors require additional authority to issue up to another 50,000,000 new ordinary shares, in addition to the 115,297,268 new ordinary shares authorised for issue by shareholders on a non pre-emptive basis at the Company's General Meeting, held on the 5 August 2020.  The total number of new ordinary shares available for conversion would therefore be 165,297,268, which is equivalent to approximately 14.3 per cent of the Company's current share capital.

The Directors have therefore resolved to convene a general meeting of the Company to propose the necessary resolutions to issue the additional shares,  to be convened for 10.00 a.m. on 27 November 2020 at Oak House, Hirzel Street, St Peter Port, Guernsey GY1 3RH, notice of which is set out at the end of the Circular.

In addition, the Directors are proposing additional resolutions at the General Meeting to refresh ongoing general authorities to issue additional ordinary shares up to 10 per cent of the Company's issued share capital.  These are to provide the Company with the flexibility of ongoing authorities to remain in place until the Company's next annual general meeting (expected to be held in June 2021). These additional resolutions are conditional upon the specific resolutions to issue the additional conversion shares being passed.

The Directors consider that the resolutions at the General Meeting are in the best interests of Shareholders as a whole and unanimously recommend that Shareholders vote in favour of them as they intend to do in respect of their own beneficial holdings of 30,231,667 Bushveld shares, representing 2.62 per cent of the existing issued ordinary share capital of the Company.

A copy of the Notice of the Meeting and Circular have been posted, a copy of the documents will also be available for viewing on Bushveld's website at www.bushveldminerals.com    

ENDS

Enquiries: [email protected]

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a low-cost, integrated, primary vanadium producer, with ownership of high-grade vanadium assets. 

The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 100 per cent of Bushveld Vanchem, a primary vanadium processing facility with a beneficiation plant; the Mokopane Vanadium Project and the Brits Vanadium Project.

Bushveld's vision is to become a significant, low-cost, integrated primary vanadium producer through owning high grade assets. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries. Bushveld Energy, the Company's energy storage solutions provider, plays a leading role in the development and promotion of the role of vanadium in this market.

The Company's approach to project development recognises that, whilst attractive project economics are imperative, they may be insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.

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.

About Bushveld Energy Limited

Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that electricity in Africa intersects paramount potential for social transformation with an immense commercial opportunity.

Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.

http://www.bushveldenergy.com 

About Orion

Orion is a global alternative investment management firm with approximately US$6.2 billion under management (as of 3/31/2020). Orion specializes in institutional metals and mining investment strategies in the industrial and precious metals space. Orion's private equity, hedge fund, and merchant service divisions enable us to access in-depth knowledge of the global metals and mining supply chain and robust insight into the physical and financial demand driving global metals prices.

For more information visit www.orionresourcepartners.com.