Last checked at 31 Mar 2017 17:11
31 March 2017 |
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Satisfaction of Conditions Precedent for Vametco Acquisition
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, is pleased to announce that all the conditions precedent to the Share Purchase Agreement ("SPA") signed between Bushveld Vametco Limited ("BVL") and Evraz Group S.A ("Evraz") for the acquisition of 78.8% shareholding in Strategic Minerals Corporation ("SMC") (the "Acquisition"), have now been fulfilled. This also includes receipt of consent for the Acquisition from the Minister of the South African Department of Mineral Resources in terms of section 11 of the Minerals and Petroleum Resources Development Act, 2002 ("MPRDA").
In accordance with the terms of the SPA, completion of the Acquisition, at which certain deliverables are due from each of the parties and BVL has to make a total payment to Evraz of US$14.8 million (being the outstanding balance of the purchase price), must take place by Friday 7 April 2017.
Financing for payment of the US$14.8 million comprises the following facilities (further details can be found in the Company's 30 March 2017 announcement):
· The Barak Fund SPC Limited bridge loan facility of US$11.0 million;
· The Financing and Sales and Marketing Agreement with Wogen Resources Limited of US$3.0 million;
· A cash contribution of US$800,000 from Bushveld and Yellow Dragon Holdings Limited.
Further updates will be provided as appropriate.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, "We are pleased to take yet another firm step towards the completion of SMC. We are grateful to the Department of Mineral Resources in South Africa for their professional and timeous processing of the regulatory approvals in terms of the Mineral and Petroleum Resources Development Act. We look forward to now complete the acquisition and launch in earnest our quest to build a significant low cost integrated vanadium platform."
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited
Fortune Mojapelo +27 (0) 11 268 6555
Strand Hanson Limited (Nominated Adviser)
Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494
Beaufort Securities (Joint broker)
Jon Bellis +44 (0) 20 7382 8300
SP Angel Corporate Finance (Joint broker)
Ewan Leggat +44 (0) 20 3470 0470
Blytheweigh (Public Relations)
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.
The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
Bushveld Minerals' approach to project development recognises that whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. 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: www.bushveldminerals.com