REG - Bushveld Minerals Ld - Appointment of Business Rescue Practitioners

Bushveld MineralsAnnouncement

19/11/2024 10:15

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RNS Number : 8040M  Bushveld Minerals Limited  19 November 2024

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 November 2024

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Appointment of Business Rescue Practitioners

Further to the announcement of 18 November, the Board of Bushveld Minerals
announces that it has placed its principal operating subsidiary, Bushveld
Vametco Holdings (Pty) Limited ("BVH"), along with Bushveld Vametco Alloys
(Pty) Limited ("BVA") and Bushveld Minerals SA (Pty) Limited ("BMSA")
(collectively the "South African entities"), into Business Rescue.

BVH is the Company's mining right holder, whereas BVA is the company appointed
to conduct mining and incidental services on behalf of BVH. BMSA is the
company used for the South African head office located in Johannesburg.

A business rescue proceeding affords the South African entities protection
from legal action while their future is assessed and potential plans to rescue
the business are implemented. The Company has nominated Piers Marsden and
Jenna Osborne of Matuson &  Associates to be its joint business rescue
practitioners, which is in the process of being filed with the Companies and
Intellectual Property Commission. Matuson & Associates has significant
experience in business rescue, turnarounds and corporate restructures in the
South African mining sector. The process focuses on  operations continuing
 while the practitioner assists with turn around and finding funding
solutions.

The Company is engaging with its advisors, including Guernsey insolvency
practitioners, in respect of potential courses of action for Bushveld
Minerals.

Further announcements will be made in due course as appropriate.

 

Craig Coltman, CEO of Bushveld Minerals commented:

 "This was not an easy decision to take or one that was done lightly,
however, in the current circumstances, it is the only course of action that
the Board could take in the interest of all stakeholders.

The principal conditions that have led the Board to this decision are  the
depressed vanadium market that has resulted in us operating at a loss for an
extended period of time; the lack of cash availability that restricted the
amount of maintenance and repairs that could be done at Vametco, resulting in
heightened levels of plant breakdowns and production loss; historically high,
long outstanding creditor balances; and failure to procure suitable funding
from existing stakeholders or third parties despite efforts to do so.

Matuson & Associates have significant experience in turnaround situations
and share our belief that there is reasonable cause for business recovery."

 

Enquiries :  info@Bushveldminerals.com (mailto:info@Bushveldminerals.com)

 Bushveld Minerals Limited                                                                     +27 (0) 11 268 6555
 Craig Coltman, Chief Executive Officer

 SP Angel Corporate Finance LLP                          Nominated Adviser & Joint Broker      +44 (0) 20 3470 0470
 Richard Morrison / Charlie Bouverat
 Grant Barker / Abigail Wayne

 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

 

 

 

 

 

ENDS

 

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a primary vanadium producer. It is one of the world's
three primary vanadium producers, offering compelling exposure to vanadium
through its upstream asset.

 

Detailed information on the Company and progress to date can be accessed on
the website www.bushveldminerals.com (https://www.bushveldminerals.com/)

 

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