3:46 PM, March 20 2017
Bushveld Minerals Ltd had soared by over 20% on the bourses post the company announced that on Friday 17 March 2017 it signed a definitive Sales and Marketing Agreement with Wogen Resources Limited. This assists with the financing required for the conditional acquisition by Bushveld Vametco Limited of a 78.8% interest in Strategic Minerals Corporation from Evraz Group SA .
The Wogen Financing comprises a US$3.0 million Product prepayment as part of the acquisition debt package for the Acquisition Transaction and inventory and receivable financing of US$6.0 million to optimise the position of the operations of Vametco Alloys.
The CEO of the company, Fortune Mojapelo commented on the same, “We are pleased to welcome Wogen as a long term partner for the sales, marketing and distribution of Nitrovanpost completion of the Transaction. The Wogen Agreement not only takes us a step closer to completing the transformational acquisition of SMC but also provides important working capital finance for Vametco Alloys. We look forward to a fruitful and mutually beneficial relationship based on Wogen's extensive experience in commodities trading and distribution across a range of commodity markets including vanadium, servicing customers across the globe”.