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Bushveld Minerals welcomes AfriTin’s new loan facility

Bushveld will still provide surety over the new £2mln loan, but it said this was “less onerous” as it is not a cash collateralised guarantee

Bushveld Minerals Limited
Bushveld spun off its tin business back in 2017

Vanadium producer Bushveld Minerals Limited (LON:BMN) has outlined how AfriTin Mining Limited’s (LON:ATM) new loan facility affects it.

Bushveld owns an 8% stake in AfriTin, which this morning announced it has agreed a new £2mln (35mln Rand) working capital facility with Nedbank Namibia.

READ: AfriTin sets up new loan facility as production nears

Back in May, Bushveld agreed to provide AfriTin with a short-term working capital facility also for 30mln Rand while the latter finalised its longer-term debt financing.

Bushveld will provide surety over the Nedbank loan, meaning it would assume responsibility for the debt obligation in the unlikely event of default.

“The above is less onerous on Bushveld Minerals as it is not a cash collateralised guarantee,” the company said in a statement.

Bushveld added: “The company is comfortable with the progress that AfriTin has made towards production at its Namibian flagship project and with the security it retains from AfriTin for the suretyship in the form of a notarial bond over the AfriTin processing plant.”

Bushveld shares were up almost 6% to 21.4p on Friday afternoon.

Quick facts: Bushveld Minerals Limited

Price: 22.5 GBX

LSE:BMN
Market: LSE
Market Cap: £259.42 m
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