BUSHVELD Minerals’ days appeared numbered after the UK-listed vanadium miner said on Monday it had entered business rescue proceedings.
The company has requested trading in its shares be suspended “due to finance uncertainty”, adding that discussions “with various stakeholders have not been successful” regarding its refinancing.
Craig Coltman, CEO of Bushveld Minerals since July last year, said in a third quarter update on November 12 that the company did not have sufficient funds to cover its “immediate liabilities”.
“As a consequence, the company has engaged with a turnaround specialist to understand the prospects for business recovery and achieve the best outcome for all stakeholders and affected persons,” it said in its announcement.
“Consequently, the company has requested that trading in the company’s shares on the AIM market of the London Stock Exchange be suspended due to financial uncertainty,” it said.
Coltman offered the slightest of glimmers of hope last week when he said the vanadium price had started to improve – the first time since he had been at the firm’s helm.
“We are assessing all options with shareholders, lenders, and advisors, but I am unable to provide further details at this point in time in terms of stock exchange regulations,” he said during the presentation.
In an effort to ease the pressure on the company, Bushveld agreed to sell its Vanchem facilities to Southern Point Resources (SPR), a privately held company. SPR had earlier expressed an interest in a larger recapitalisaton of the business before settling on Vanchem. It is a 15% shareholder in Bushveld as a whole, however.
Coltman confirmed a $3.5m capital payment had been received from SPR for Vanchem with a further $15m to $20m due in quarterly payments of $1.25m over three years.
Bushveld also sold its shares in Lemur Holdings for $100, the main benefit of which is no longer being liable for the outstanding $2.5m in debt owed to the Development Bank of South Africa.
