Last checked at 27 Sep 2018 12:30
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
27 September 2018
Bushveld Minerals Limited
("Bushveld" or the "Company")
Update on Black Economic Empowerment Ownership
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, is pleased to announce that it has completed the sale of a 1% equity interest in Bushveld Vametco Holdings (Proprietary) Limited ("Vametco") to its two Black Economic Empowerment shareholders Business Ventures Investments No. 1833 (Proprietary) Limited and Business Ventures Investments No. 973 (Proprietary) Limited ("BEE Shareholders") for a total cash consideration of R1,780,000.
The commitment to conclude the transaction at the agreed consideration was made by the previous Strategic Minerals Corporation ("SMC") owners, prior to Bushveld's acquisition, with a view to meeting the Black Economic Empowerment equity requirements as set out in the current Mining Charter. Accordingly, the sale increases Vametco's Black Economic Empowerment shareholding from the current 25.0% to 26.0%, ensuring Vametco is fully compliant with the minimum Black Economic Empowerment ownership requirements of the current Mining Charter. Bushveld's shareholding in Vametco, through its wholly owned subsidiary SMC, accordingly reduces to 74%.
Terms of the sale agreement are as follows:
· Total 1.0% interest acquired to increase total BEE Shareholders interest to 26.0% for a total cash consideration of R1,780,000;
· The R1,780,000 consideration is paid in the form of vendor financing provided to BEE Shareholders by Bushveld to be repaid to from future dividends payable to BEE Shareholders;
· Strategic Minerals Corporation and Bushveld's ownership reduced from 75.0% to 74.0%.
Commenting on the transaction, Fortune Mojapelo said "Vametco's mining right underpins the value of the operation to Bushveld and this transaction contributes to the security thereof in meeting our licence to operate. While the transaction consideration, which was agreed between the parties prior to Bushveld's acquisition of SMC, reflects a material discount to value, the significance of the Company's compliance with South African mineral laws and the Mining Charter cannot be overstated."
Enquiries: info@bushveldminerals.com
| Bushveld Minerals |
| +27 (0) 11 268 6555 |
| Fortune Mojapelo, Chief Executive Officer |
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| Chika Edeh, Head of Investor Relations |
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| SP Angel Corporate Finance LLP | Nominated Adviser & Broker | +44 (0) 20 3470 0470 |
| Ewan Leggat |
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| Richard Morrison |
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| Alternative Resource Capital | Joint Broker |
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| Rob Collins |
| +44 (0) 207 186 9001 |
| Alex Wood |
| +44 (0) 207 186 9004 |
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| Tavistock | Financial PR |
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| Charles Vivian / Gareth Tredway |
| +44 (0) 207 920 3150 |
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| Lifa Communications | Financial PR (South Africa) |
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| Gabriella von Ille |
| +27 (0) 711 121 907 |
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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 75 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 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. 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 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.
While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.
The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.
The Company's 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 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 www.bushveldminerals.com