Bushveld Minerals Limited (LON:BMN) has satisfied the conditions required to draw down from the Orion Mine Finance facility announced at the end of September.

The vanadium producer is in the process of drawing down funds from the US$30mln production financing agreement and has also informed Orion it plans to issue convertible loan notes to the finance group in return for US$35mln.

READ Bushveld raises US$35mln through issue of convertibles to Orion Mine Finance

The production financing agreement will provide funding to continue to grow production at Bushveld’s Vametco project and to repay debt.

The proceeds raised from the issue of the convertible notes will be applied towards capital investment purposes for the first phase of Vanchem’s critical refurbishment programme, and debt repayment purposes.

“It is pleasing that we have been able to execute both transactions in just two months, allowing us to begin allocating funds towards our growth plans,” said Fortune Mojapelo, the chief executive officer of Bushveld in a statement.

“With a solid balance sheet and a clear vision of where we want to be in the next few years, we enter 2021 re-energised. At the same time, the world also begins to see signs of an end to what has been a very difficult year for everyone, and signs that it could be followed by one of a recovery,” he added.

Philip Clegg, a portfolio manager at Orion, said the company was “thrilled to get the expansion at Vametco fully funded and to support the refurbishment plans at Vanchem.”

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