Gowling WLG's corporate and project finance teams have advised Bushveld Minerals on a US$30 million Production Financing Agreement (PFA) with Orion Mine Finance, a mining-focused investment business, and an associated issue of a US$35m Convertible Loan Note Instrument (CLN).
Bushveld Minerals Limited is a low-cost, integrated, primary vanadium producer and energy storage provider, with ownership of high-grade vanadium assets. The PFA will finance Bushveld's expansion plans at its Vametco mine and plant, as well as debt repayment, while the proceeds of the CLN will go towards the first phase of refurbishment of Bushveld's Vanchem vanadium facility and further debt repayment.
Charles Bond, head of natural resources at Gowling WLG and Sue Johnston, corporate legal director advised on the CLN, and Andrew Newbery, partner in the firm's project finance team, led the debt structuring stage of the deal, with Infrastructure Finance partner Nath Curtis taking over in the later stages to lead on the PFA documentation negotiation phase shortly after joining the team from Burges Salmon. The PFA advisory team also included Charlotte Swift and Dan O'Donnell.
"Royalty and streaming financing models have become a staple for Gowling WLG's mining clients over the last few years. The Production Financing Agreement another innovative example of helping clients raise long term capital", said Andrew Newbery.
Nath Curtis added: "This is the sort of complex and high value international financing work that attracted me to the firm. I am pleased to have had a significant role in such an important mandate so early after joining the firm".
Fortune Mojapelo, CEO of Bushveld Minerals commented: "Charles, Sue, Andrew and Nath have been a pleasure to work with. They have a detailed understanding of the company and provided knowledgeable advice in a timely manner. As always, the team did a fantastic job."
Gowling WLG's multi-disciplinary Natural Resources team has the proven ability to advise on all stages of a project, and combine legal expertise from across its international offices to offer a global perspective and specialised local knowledge.