Alchemy Law is proud to have advised Southern Point Resources (SPR) in the conclusion of a binding term sheet agreement between investment fund SPR GP1 (Pty) Limited and Bushveld Minerals Limited announced on the London Stock Exchange yesterday.
The highlights of the cumulative proposed investment of US$69.5 – US$77.5 million by SPR include:
- An interim working capital facility secured against production at the Vanchem plant to provide additional working capital and fund the ongoing expansion of production at Vanchem.
- Southern Point Resources’ proposed purchase of 50% of the shares in Bushveld Minerals’ subsidiary that owns its Vanchem vanadium plant, and its 64% equity interest in its subsidiary that owns its Mokopane project.
- A new equity investment by SPR in Bushveld Minerals Limited for an amount up to US$12.5 million. SPR will be entitled to nominate one non-executive director to the Bushveld Minerals board.
- Provision by SPR of a medium-term trade finance working capital facility to Bushveld Minerals for a new marketing and sales arrangement to be carried out by SPR for all Bushveld Minerals’ product.
- A potential future commitment by SPR of an investment in Vanchem for the recommissioning of Vanchem’s Kiln-1.
Morné van der Merwe, says about the announcement: “We are pleased to be positioned to support SPR in its endeavours to be a significant participant in the future of Bushveld Minerals Limited.”
Read the full London Stock Exchange announcement: https://www.londonstockexchange.com/news-article/BMN/investment-by-southern-point-resources/16117748