Bushveld Minerals Regulatory News (BMN)

1 April 2020

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Bushveld to hold 8.71 per cent of newly created Invinity Energy Systems plc

Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer, which owns high-grade vanadium assets in South Africa ("Bushveld"), notes that redT energy plc ("redT") has today received shareholder approval for its proposed merger with Avalon Battery Corporation ("Avalon") (the "Merger"). The merged entity will be named Invinity Energy Systems plc ("Invinity"). Bushveld entered into a Joint Venture agreement with redT on 9 March 2020 to form a Vanadium Financing Partnership to supply vanadium electrolyte to be used in third party-owned Vanadium Redox Flow Batteries ("VRFBs") projects developed by redT. The Joint Venture agreement will be transferred to Invinity.

· The Merger will create a leading player in the growing energy storage market with a presence in North America, Europe, sub-Saharan Africa and Asia.

· Invinity is expected to have strong competitive advantages, gain financial stability and form a base for rapid future growth.

· Invinity will be able to offer a VRFB that competes effectively against other energy storage technologies.

On 1 November 2019, Bushveld announced it had agreed to support the Merger with funding of US$5 million through a convertible loan to Avalon. In accordance with the terms of the convertible loan, on successful completion of the Merger the loan will convert into shares in Invinity. The previously provided US$5 million loan (together with the accrued interest and commitment fee) has been converted into 302,978,063 Ordinary Shares at a price of 1.65 pence in Invinity, representing up to 8.71 per cent of Invinity. The shares issued to Bushveld are not subject to a lock-in arrangement. 

In addition to the funding from Bushveld, Invinity has raised £7.9 million through an equity placing at 1.65 pence per share.

Under the agreement, following the completion of the Merger, Bushveld has a right to nominate a director to the Board of Invinity, subject to Bushveld retaining at least 5 per cent of the issued share capital of Invinity. The nomination of a director will be done in due course. Bushveld will retain that right after one year provided it beneficially owns at least 10 per cent of Invinity. In addition, for so long as Bushveld beneficially owns at least 20 per cent. of Invinity, it shall have a right to nominate two members of the board of Invinity.

The investment is in line with Bushveld's strategy of partnering with VRFB companies and part of the VRFB Investment Platform ("VIP"), as announced on 1 November 2019.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"At only a few months old, our VRFB Investment Platform is already gathering momentum on the back of the investments made to date.

"Invinity starts its journey with a strong project pipeline already in place, one which it plans to grow even more in the future. Despite the global impact of the Covid-19 pandemic, the fundamental need for long duration energy storage to support the energy transition has not changed. The benefit to Bushveld of supporting this downstream vanadium-based industry is already becoming clear, and Bushveld continues to support the growth and its participation in the energy storage industry."

ENDS

Inquiries: info@bushveldminerals.com

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a low-cost, integrated, primary vanadium producer, with ownership of high-grade vanadium assets.

The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 100 per cent of Bushveld Vanchem, a primary vanadium processing facility with a beneficiation plant; the Mokopane Vanadium Project and the Brits Vanadium Project.

Bushveld's vision is to become a significant, low-cost, integrated primary vanadium producer through owning high grade assets. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries. Bushveld Energy, the Company's energy storage solutions provider, plays a leading role in the development and promotion of the role of vanadium in this market.

The Company's approach to project development recognises that, whilst attractive project economics are imperative, they may be insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.

Detailed information on the Company and progress to date can be accessed on the website at www.bushveldminerals.com.

About Bushveld Energy Limited

Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that electricity in Africa intersects paramount potential for social transformation with an immense commercial opportunity.

Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.

http://www.bushveldenergy.com