LONDON (Alliance News) - Bushveld Minerals Ltd Friday said its subsidiary has signed definitive and legal agreements to acquire the Brits vanadium project in South Africa.
Bushveld has signed the agreements through Lemur Resources, in which it holds a 63% stake. Lemur will acquire the project from Sable Metals and Minerals Ltd and the definitive agreements follow on from the binding term sheet signed back in August.
"We are pleased to announce the acquisition of the Brits vanadium project. While it is not new to the market, having been announced in August 2015 following the signing of the term sheet with Sable, the acquisition further reinforces our solid vanadium resource platform on the western limb of the Bushveld Complex," said Chief Executive Fortune Mojapelo.
The project comprises of three greenfield properties in the North West province of South Africa which are prospective for vanadium, and on Friday, Bushveld said the total consideration for the acquisition is USD600,000.
The project is adjacent to an existing mining and processing operation and several other potential processing facilities and the area encompassing the project is well serviced with infrastructure.
"The Brits project is in a geographic location that is well serviced with logistics infrastructure, in close proximity to several existing vanadium processing facilities. This addresses two important aspects of our vanadium platform strategy: Consolidating quality vanadium resources and, more importantly, developing brownfield vanadium processing infrastructure," said Mojapelo.
Bushveld shares were up 0.8% to 3.08 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Bushveld Minerals (BMN)