REG - Bushveld Minerals Ld - Definitive agreement for 64% Mokopane Sale

Bushveld MineralsAnnouncement

15/12/2023 08:00

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RNS Number : 9684W  Bushveld Minerals Limited  15 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.

 

15 December 2023

Bushveld Minerals Limited

("Bushveld" or the "Company")

Definitive agreement for the acquisition by Southern Point Resources - Fund 1
SA L.P of a 64% interest in Mokopane

 

Further to the Company's announcement on 11 September 2023, Bushveld Minerals
Limited (AIM: BMN), the integrated primary vanadium producer, is pleased to
announce it has entered into a definitive agreement for the acquisition of 64%
of the issued shares in Pamish Investments No. 39 Proprietary Limited
("Mokopane"), by Southern Point Resources - Fund 1 SA L.P., represented by its
general partner, SPR GP1 Proprietary Limited, ("SPRF") for an acquisition
price of US$3.7 million (the "Transaction").

 

Highlights

§ US$3.7 million will be paid to Bushveld for its 64% interest in Mokopane.

§ The parties have agreed to a right of first refusal with respect to ore
mined at the Mokopane mine for use at the Vanchem vanadium processing
facility.

§ The Transaction is conditional upon:

·      SPRF having conducted a satisfactory confirmatory legal due
diligence;

·      Completion of the acquisition by SPRF of 50% of the shares in
Vanchem, which owns the Vanchem vanadium plant;

·      The waiver of pre-emptive rights by minority shareholders in
Mokopane to Bushveld's interest in Mokopane;

·      Consent of the Minister of Mineral Resources and Energy to the
change of control of Mokopane in respect of each mining and prospecting
licence and approval from the South African Competition Commission.

The acquisition of Bushveld's indirect interest in Mokopane for US$3.7 million
forms part of a proposed package of inter-conditional transactions which,
would provide a cumulative investment by SPRF (and its affiliates) into
Bushveld and its group companies of US$69.5-US$77.5 million.

The Mokopane project includes one of the world's largest primary vanadium
resources, with an average grade of 1.80 per cent V(2)O(5) in-magnetite. The
project is located on the central portion of the Northern Limb of the Bushveld
Complex.

Craig Coltman, CEO of Bushveld Minerals Limited, commented:

"We are pleased to be announcing a definitive agreement on another piece of
the overall US$69.5-US$77.5 million funding package first announced in
September. Amongst others, in respect of the binding term sheet of these
transactions, including an undertaking by SPR who acquires our 64% interest in
the Mokopane project. In addition, Bushveld has secured a perpetual first
right of refusal to purchase any ore mined at Mokopane for Vanchem's own use
at its processing facility."

 

 

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 LLP                      Nominated Adviser & Broker      +44 (0) 20 3470 0470
 Richard Morrison / Charlie Bouverat
 Grant Barker / Richard Parlons

 Hannam and Partners                                 Joint Broker                    +44 (0) 20 7653 4000
 Andrew Chubb, Matt Hasson, Jay Ashfield

  Tavistock Communications                           Financial PR
 Gareth Tredway / Tara Vivian-Neal / James Whitaker                                  +44 (0) 207 920 3150

 

 

ENDS

 

 

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 more than 3,800 mtV, representing approximately three per cent 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 (http://www.bushveldminerals.com)

 

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