LONDON (Alliance News) - Bushveld Minerals Ltd on Friday said it has postponed completion of its acquisition of Strategic Minerals Corp while it arranges amendments to the purchase agreement.
The mineral development company is buying Strategic Minerals, which owns the Vametco vanadium mine and plant in South Africa, from Russian miner and steel producer Evraz PLC for USD17.2 million.
The acquisition was supposed to complete on or before Friday, but on Friday afternoon Bushveld released a statement saying that it, its financing partner Yellow Dragon and Evraz are finalising working capital and net debt adjustments in accordance with the purchase agreement and are also in discussions to amend terms of the agreement.
Completion of the initial tranche has now been postponed to July 22 while alternative completion arrangements are agreed.
"Bushveld and Yellow Dragon remain focused on acquiring the entire 78.8% interest in SMC. The amendment discussions underway and extension to July 22, 2016 allows all efforts to realise this objective," Chief Executive Fortune Mojapelo said.
Shares in Bushveld closed down 4.2% at 1.70 pence on Friday, while Strategic Minerals shares closed down 3% at 0.320p and Evraz shares closed flat at 164.70p.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Bushveld Minerals (BMN)
Evraz (EVR)
Strategic Minerals (SML)