LONDON, UK: Bushveld Minerals Limited, a leading vanadium producer, has announced a series of transactions with Southern Point Resources, a strategic partner and investor, to boost its working capital and streamline its marketing and sales operations. The transactions include:
- A sales and marketing agreement with SPRF, who will exclusively market and sell Bushveld’s vanadium products and electrolyte, and provide a working capital facility of US$25-30 million.
- A marketing fee of 3.75% of the total revenue, with a 5% bonus for sales above a certain trigger price.
- A three-year term, extendable by another three years, for the sales and marketing agreement, which will replace the existing arrangements between June 2024 and June 2026.
- A sale of Bushveld’s 64% stake in Mokopane, a large vanadium project, to SPRF for US$3.7 million, with a right of first refusal for the ore supply to Vanchem, a vanadium processing plant.
- A subscription by SPRF for up to 29.9% of Bushveld’s shares, subject to Orion Mine Finance’s consent.
Craig Coltman, CEO of Bushveld, said that the transactions will “fundamentally transform” the company and create “further synergies” with SPRF and its affiliates, especially Highveld, a major vanadium producer.
Bushveld Minerals agrees to sell half of Vanchem to SPR for US$21.3 million