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|Bushveld||LSE:BMN||London||Ordinary Share||GG00B4TM3943||ORD 1P|
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Bushveld Minerals Limited Strategic Minerals Corporation Update
UK Regulatory (RNS & others)
RNS Number : 8865Y
Bushveld Minerals Limited
08 March 2017
08 March 2017
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Update on Conditional Purchase Agreement with Evraz for Strategic Minerals Corporation
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 provide an update in respect of the acquisition of Strategic Minerals Corporation ("SMC") from Evraz Group SA ("Evraz") (the "Transaction").
Bushveld Vametco Limited ("Bushveld Vameco"), in which Bushveld has a 45% interest, signed an amended and restated Share Purchase Agreement ("SPA") on 22 July 2016, in terms of which it would, in a single stage, acquire all the shares held by Evraz in SMC, subject to financing and the fulfilment of several conditions precedents.
Since the July announcement, Bushveld Vameco has secured unconditional approval from the Competition Commission for the transaction. An application in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002 ("MPRDA") for the Ministerial consent to the Acquisition was lodged with the Department of Mineral Resources and is currently being evaluated.
Furthermore, Bushveld Vametco was required, under the terms of the SPA, to provide proof of funding on 28 February 2017 in a form acceptable to Bushveld Vametco, acting reasonably, for the balance of the consideration payable to Evraz, being US$14.8 million. Accordingly, Bushveld Vameco has provided the required proof of funding to Evraz subsequent to which both Bushveld Vametco and Evraz have since commenced preparations for the completion of the Transaction by the long stop date of 31 March 2017.
Busvheld Vametco has secured funding support for the balance of the acquisition comprising debt and mezannine debt instruments in respect of which it has signed term sheets. Bushveld Vametco is in advanced stages of negotiating definitive legal agreements.
Further updates will be provided as appropriate.
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
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
This information is provided by RNS
The company news service from the London Stock Exchange
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March 08, 2017 07:32 ET (12:32 GMT)
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