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.
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.