The acquisition places the Company in an advantageous position to offer an attractive and diverse suite of vanadium products capable of servicing the steel and chemical sectors and the burgeoning energy storage market
Image: Bushveld completes acquisition of Vanchem. Photo: Courtesy of rawpixel from Pixabay.
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer, with ownership of high grade vanadium assets in South Africa, is pleased to announce that all outstanding conditions relating to the Vanchem Acquisition, initially announced on 1 May 2019 (https://polaris.brighterir.com/public/bushveld_minerals/news/rns/story/x2qeqlx), have been fulfilled.
Bushveld Minerals has therefore acquired, through its wholly owned South African subsidiary, Bushveld Vanchem Proprietary Limited (“BV”):
· the Vanchem Plant from Vanchem Vanadium Products (Pty) Limited (“VVP”), a subsidiary of Duferco Vanadium Investment Holding S.A.;
· South African Japan Vanadium Proprietary Limited (“SAJV”), a wholly owned subsidiary of VVP (together with the Vanchem Plant, the “Vanchem Business”); and
· Through Bushveld Minerals Limited, 100 per cent of the issued shares in Ivanti Resources (Pty) Limited (“Ivanti”) from Duferco Participations Holding S.A (“Duferco”).
As previously notified on 23 October 2019, the total consideration for the acquisition was reduced from US$68 million to US$53.5 million, of which US$30.5 million was payable in cash (US$30 million on closing and US$0.5 million after two years) and the balance (US$23.0 million) would be satisfied through the issue of Bushveld Minerals unsecured convertible loan notes. The Company is pleased to announce that:
· The US$30 million cash payment has been made by Bushveld Minerals and VVP has confirmed receipt thereof;
· The US$23.0 million Bushveld Minerals unsecured convertible loan notes have been issued by the Company to Duferco, which has confirmed receipt thereof; and
· A further cash payment of US$0.5 million, plus an amount equal to the working capital adjustment of the Vanchem Businesses, will be made after two years.
Accordingly, all conditions to closure of the transaction have been fulfilled and the Company has taken operational control of the Vanchem Business and Ivanti.
BV has taken over VVP’s existing senior production team, which will provide operational stability while Vanchem is integrated into Bushveld Minerals. André Strydom has been appointed General Manager of Vanchem. André brings over 18 years of mining and beneficiation experience, most recently as the General Manager of the Sadiola and Yatela mines operated by AngloGold Ashanti, a role he held since 2012.
The Company will now refine its plans for the refurbishment programme and update the market once its detailed assessment is complete.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
“We are delighted to announce the successful completion of the acquisition of the Vanchem assets and Ivanti shares as this is a transformational acquisition and represents a significant step in the execution of the Company’s strategic plan.
I want to take this opportunity to welcome André Strydom and the Vanchem management team to Bushveld Minerals. The Vanchem team will complement the Vametco team’s skills and knowledge, which will support cross-pollination of vanadium expertise and experience, as well as unlock multiple synergies across Vametco, Vanchem and Mokopane.
The acquisition places the Company in an advantageous position to offer an attractive and diverse suite of vanadium products capable of servicing the steel and chemical sectors and the burgeoning energy storage market.
We are now able to fine tune the plan for these assets and then provide, in due course, a comprehensive strategy to our stakeholders.
As we come towards the end of 2019, we have laid the groundwork for a strong 2020, which will see Bushveld Minerals strengthening its competitive position as the leading vertically integrated primary vanadium producer.”
Source: Company Press Release