Last checked at 15 Dec 2023 07:51
Market Abuse Regulation ("MAR") Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
15 December 2023
Bushveld Minerals Limited
("Bushveld" or the "Company")
Definitive agreement for the acquisition by Southern Point Resources - Fund 1 SA L.P of a 64% interest in Mokopane
Further to the Company's announcement on 11 September 2023, Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer, is pleased to announce it has entered into a definitive agreement for the acquisition of 64% of the issued shares in Pamish Investments No. 39 Proprietary Limited ("Mokopane"), by Southern Point Resources - Fund 1 SA L.P., represented by its general partner, SPR GP1 Proprietary Limited, ("SPRF") for an acquisition price of US$3.7 million (the "Transaction").
Highlights
§ US$3.7 million will be paid to Bushveld for its 64% interest in Mokopane.
§ The parties have agreed to a right of first refusal with respect to ore mined at the Mokopane mine for use at the Vanchem vanadium processing facility.
§ The Transaction is conditional upon:
· SPRF having conducted a satisfactory confirmatory legal due diligence;
· Completion of the acquisition by SPRF of 50% of the shares in Vanchem, which owns the Vanchem vanadium plant;
· The waiver of pre-emptive rights by minority shareholders in Mokopane to Bushveld's interest in Mokopane;
· Consent of the Minister of Mineral Resources and Energy to the change of control of Mokopane in respect of each mining and prospecting licence and approval from the South African Competition Commission.
The acquisition of Bushveld's indirect interest in Mokopane for US$3.7 million forms part of a proposed package of inter-conditional transactions which, would provide a cumulative investment by SPRF (and its affiliates) into Bushveld and its group companies of US$69.5-US$77.5 million.
The Mokopane project includes one of the world's largest primary vanadium resources, with an average grade of 1.80 per cent V2O5 in-magnetite. The project is located on the central portion of the Northern Limb of the Bushveld Complex.
Craig Coltman, CEO of Bushveld Minerals Limited, commented:
"We are pleased to be announcing a definitive agreement on another piece of the overall US$69.5-US$77.5 million funding package first announced in September. Amongst others, in respect of the binding term sheet of these transactions, including an undertaking by SPR who acquires our 64% interest in the Mokopane project. In addition, Bushveld has secured a perpetual first right of refusal to purchase any ore mined at Mokopane for Vanchem's own use at its processing facility."
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited | +27 (0) 11 268 6555 | |
Craig Coltman, Chief Executive Officer | ||
Chika Edeh, Head of Investor Relations | ||
SP Angel Corporate Finance LLP | Nominated Adviser & Broker | +44 (0) 20 3470 0470 |
Richard Morrison / Charlie Bouverat |
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Grant Barker / Richard Parlons |
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Hannam and Partners | Joint Broker | +44 (0) 20 7653 4000 |
Andrew Chubb, Matt Hasson, Jay Ashfield |
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Tavistock Communications | Financial PR | |
Gareth Tredway / Tara Vivian-Neal / James Whitaker | +44 (0) 207 920 3150 |
ENDS
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a vertically integrated primary vanadium producer, it is one of only three operating primary vanadium producers. In 2022, the Company produced more than 3,800 mtV, representing approximately three per cent of the global vanadium market. With a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com