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Bushveld Minerals Ltd reported on Friday that a $798,000 loan owed by its subsidiary, Bushveld Vanchem Pty Ltd, to a fellow subsidiary, Bushveld Vanadium 2 Pty Ltd, had not been paid and was in default. The South Africa-focused vanadium producer said the loan amount, less accrued interest, was due last Thursday, 14 days after Bushveld Vanadium 2 finalised the sale of its stake in Bushveld Vanchem. The amount was intended as partial repayment of a shareholder loan balance, plus accrued interest of 15% per annum, less certain expenses. The amount also factored in that $1.9 million was already considered to be repaid by Southern Point Resources Fund in the form of damages for kiln repairs which resulted in a period of non-production. Bushveld Minerals said it disputed the $1.9 million claim, but had agreed to appoint an independent expert to determine the actual damages incurred by the kiln repairs. The company plans to re-calculate the loan amount once the damage amount has been confirmed. The vanadium producer has delayed the deadline for repayment to December. Once Bushveld Vanchem has paid the debt, Bushveld Vanadium 2 will use it to pay off its own inter-company loan, which it owes to Bushveld Vametco Alloys Pty Ltd. Friday’s default debacle follows months of financial woes for the vanadium producer, which was suspended from trading last Monday due to inadequate funding. Bushveld Minerals and subsidiary Bushveld Vametco Holdings Pty Ltd have entered business rescue proceedings and are in talks to help Bushveld Vanadium 2 recover the amount owed by Bushveld Vanchem. Bushveld Minerals shares were last quoted at 0.31 pence each in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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