Aim-listed vanadium producer Bushveld Minerals has completed the refinancing of its unsecured convertible loan notes issued to Orion Mine Finance, which it secured in 2020.
The company has refinanced its convertible debt obligations of $47.1-million partly through $4.7-million worth of shares issued to Orion, a new convertible loan note of $14-million due June 2028, a term loan of $28-million due June 2026 and a supplemental royalty at no more than 0.26% of Bushveld’s gross revenues.
Bushveld CEO Craig Coltman says he is pleased that all conditions set out on the definitive agreement with Orion have been met and the refinancing transaction is now completed.
The repayment schedule aligns with the company’s internal cash generation projections and resolves a large liability that became current in 2023. It also removes any near-term pressure on the company’s balance sheet, while supporting its sustainable growth.
Bushveld in 2020 agreed a $65-million financing transaction with Orion, which included a $35-million convertible loan note and a $30-million production financing agreement.