TIDMBMN
RNS Number : 2839X
Bushveld Minerals Limited
19 December 2023
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.
19 December 2023
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Confirmed Acquisition of Minority Interests in Vametco
Bushveld Minerals (AIM: BMN), the AIM quoted, integrated primary
vanadium producer, is pleased to announce that, further to its
announcement of 30 October 2023, the Company has met all the
necessary conditions and received final approval from the South
African Reserve Bank ("SARB"), allowing the Company to increase its
ownership to 100% of the Vametco vanadium mine and production
facility ("Vametco") (collectively the "Transaction") .
Highlights
-- All of the conditions precedent to the Transaction as
outlined in the 30 October 2023 announcement, " Conditional
acquisition of minority interests in Vametco", have been met,
including receipt of SARB's approval of the Transaction.
-- Bushveld has accordingly acquired the 26% minority interest
in Bushveld Vametco Holdings Proprietary Limited ("BVH") from the
Black Economic Empowerment ("BEE") consortium in return for,
inter-alia, the issue of 232,836,255 new ordinary shares of 1 pence
each in the Company (the "Consideration Shares"), representing 13%
of the issued share capital on admission of the Consideration
Shares to trading on AIM.
-- The Transaction:
-- results in Bushveld owning 100% of the Vametco mine and
vanadium plant, thereby acquiring full operational, management and
financial control of Vametco;
-- gives the Group complete control over Vametco's cash flows
previously restricted by the minority interest;
-- is immediately value accretive to Bushveld Shareholders and
is expected to enhance earnings per share going forward; and
-- 70% of the Consideration Shares are subject to a 6 month lock-in period.
-- Completion of the Transaction also secures fulfilment of a
key condition precedent to the Orion Convertible Loan Note
Refinancing agreement, announced on 27 November 2023.
-- In addition to the anti-dilution provisions of the lock-in
agreement, the BEE consortium has now been granted the right to
subscribe for up to 39,682,540 new Ordinary Shares at the issue
price of 3 pence at any time during the period commencing on the
date of Admission and expiring on 28 February 2024.
Further approvals and requirements
Following the completion of the Transaction, BVH will apply to
the Minister of Mineral Resources and Energy (in terms of section
102 of the Mineral and Petroleum Resources Development Act, 2002)
to amend and update the BVH Mining Right to reflect the updated
ownership structure.
Admission, Settlement and Total Voting Rights
Application has been made to the London Stock Exchange for the
232,836,255 Consideration Shares to be admitted to trading on AIM,
("Admission"). It is expected that Admission will take effect by 21
December 202 3.
Following Admission, there will be a total of 1,791,048,114
Ordinary Shares in issue, 670,000 of which are held in treasury.
Shareholders should use the figure of 1,790,378,114 as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company, under the FCA's Disclosure and
Transparency Rules.
Craig Coltman, CEO of Bushveld Minerals Limited, commented :
"The approval of this important transaction by SARB strengthens
and confirms the direction of our Company strategy. This allows us
to consolidate the ownership of a valuable vanadium-producing
asset, solely under one entity - Bushveld Minerals."
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 Nominated Adviser,
LLP Joint Broker +44 (0) 20 3470 0470
Richard Morrison / Charlie
Bouverat
Grant Barker / Richard Parlons
Hannam & Partners Joint Broker +44 (0) 20 7907 8500
Andrew Chubb / Matt Hasson
/
Jay Ashfield
Tavistock Financial PR +44 (0) 207 920 3150
Gareth Tredway / Tara Vivian-Neal
/ James Whitaker
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 3,842 mtV, representing
more than 3% 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
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END
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