(Alliance News) - Bushveld Minerals Ltd on Friday noted that VRFB Holdings Ltd has received notice from Garnet Commerce Ltd regarding its option in Enerox Holdings Ltd, which wholly owns Enerox GmbH, the owner of the CellCube brand and energy storage system.
South Africa-focused iron ore and tin exploration and development company Bushveld Minerals said Garnet has told VRFB-H it will take a 60% stake in Enerox, an option which was set out in April. VRFB stands for 'vanadium redox flow battery'.
Garnet will pay USD3.3 million for the Enerox stake, with VRFB-H to hold the remaining 40% stake.
Mustang Energy PLC on Friday also noted Bushveld's announcement. In May, Mustang said it received approval of the Federal Ministry of Labour & Economic Affairs of the Austrian government regarding the proposed change of control of Enerox Holdings.
In mid-April, Mustang entered into a conditional agreement with Garnet and VRFB-H under which VRFB-H agreed to acquire Garnet's 50% interest in Enerox. Mustang was responsible for paying or procuring the payment of the consideration to Garnet upon completion. The total consideration to Garnet for its shareholding in Enerox was USD33.2 million.
Bushveld said both Garnet and VRFB-H will ensure that both Enerox and its holding company with continue to deal with Bushveld Energy Ltd, whose assets are in the process of being carved out from the Bushveld group.
Bushveld said Garnet and VRFB-H will agree to Bushveld Energy retain its rights of first refusal to supply electrolyte to Enerox projects for six months, subject to offering best pricing.
After this, Bushveld said Bushveld Energy will instead be provided with the right to bid on any such projects and Enerox will not grant a right of first refusal to any other third party.
This is alongside Enerox supporting Bushveld Energy completing installation and provide ongoing contracted support for the Bushveld minigrid, Bushveld said.
Shares in Bushveld were down 15% to 2.69 pence each in London on Friday afternoon, while Mustang Energy shares are currently suspended.
By Greg Rosenvinge, Alliance News reporter
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Bushveld Minerals (BMN)
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