REG - Bushveld Minerals Ld - Enerox Update

Bushveld MineralsAnnouncement

28/07/2023 07:00

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RNS Number : 5453H  Bushveld Minerals Limited  28 July 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.

 

28 July 2023

Bushveld Minerals Limited

("Bushveld Minerals", "Bushveld" or the "Company")

Enerox Update

 

Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium
producer and energy storage solutions provider, announces that VRFB Holdings
Limited ("VRFB-H") has received notice from Garnet Commerce
Limited ("Garnet") regarding its option in Enerox Holdings Limited ("EHL"),
which wholly owns Enerox GmbH (Enerox).

 

 

Transaction details

 

Garnet has given notice to VRFB-H that it is exercising the option set out in
the RNS dated 12 April 2023(1),  to pay to EHL, or directly to its
subsidiary, Enerox, US$3,250,000(2), in return for shares in EHL that will
result in Garnet holding 60% of the issued share capital of Enerox and VRFB-H
holding the remaining 40%.

 

1.     Subject to obtaining approval from the Austrian Minister of Labour
and Economic Affairs under the Austrian Investment Control Act and
notification, if required, to the Austrian competition authorities

2.     less the amount of any interim funding provided by Garnet to Enerox
prior to completion of the option

 

Until completion of the option Garnet will have certain limited rights to
direct the affairs of EHL and Enerox. The  parties have also agreed to amend
their existing joint venture agreement in relation to EHL, in particular so
that:

 

On the basis that Garnet will own 60% of the issued share capital of EHL, it
shall have the right to appoint a majority of board members to EHL.

 

Any further funding required by EHL or Enerox, if not available from third
parties, shall be made by Garnet and VRFB-H pro rata to their shareholdings,
save that if one party is not able or willing to participate in such funding
then it will be diluted accordingly.

 

Garnet and VRFB-H will procure that EHL and Enerox will continue to deal with
Bushveld Energy Limited ("BEL") whose assets are in the process of being
carved out from Bushveld Minerals Limited ("BMN") and shall agree to terms on
which:

For six months BEL will retain its rights of first refusal to supply
electrolyte to Enerox projects subject to offering best pricing, after which
BEL will instead be provided with the right to bid on any such projects and
Enerox will not grant a right of first refusal to any other third party; and

Enerox will support BEL in completing installation and provide ongoing
contracted support for the Bushveld Minigrid.

 

 

 

 

 

 

 

 

ENDS

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 Baker / Richard Parlons

 RBC Capital Markets                             Joint Broker                    +44 (0) 20 7653 4000
 Sahil Suleman / Jamil Miah

 Tavistock                                       Financial PR
 Gareth Tredway / Tara Vivian-Neal/ Adam Baynes                                  +44 (0) 207 920 3150

 

 

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a low-cost, vertically integrated primary vanadium
producer. It is one of only three operating primary vanadium producers, owning
2 of the world's 4 operating primary vanadium processing facilities. 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, the
Company participates in the entire vanadium value chain through its two main
pillars: Bushveld Vanadium, which mines and processes vanadium ore; and
Bushveld Energy, an energy storage solutions provider.

Bushveld Energy is focused on developing and promoting the role of vanadium in
the growing global energy storage market through the advancement of
vanadium-based energy storage systems, specifically Vanadium Redox Flow
Batteries ("VRFBs").

 

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

About Vametco

Vametco is located near Brits on the Western Limb of the Bushveld Complex.
The integrated operation comprises a vanadium ore mine and a processing plant
that produces mostly Nitro Vanadium. The mine lies adjacent to the Brits
Vanadium Project, which will in future serve as an alternative source of near
surface run of mine ("ROM") ore feed to the Vametco plant.

The Vametco mining operation uses open pit bench mining methods to mine a
well-defined orebody. The deposit is continuous with limited faulting and dips
in a northerly direction at approximately 19 degrees.

ROM ore is fed into a primary, secondary and tertiary crushing circuit,
followed by milling and magnetic separation to produce magnetite concentrates.
The magnetite concentrate is fed into the extraction process which consists of
a rotary kiln for roasting followed by leaching and precipitation. Thereafter
the precipitated vanadium as ammonium metavanadate is converted to modified
vanadium oxide ("MVO") in a rotary calciner. MVO is fed into the mix plant and
finally into the shaft furnaces to produce Nitro Vanadium.

About Vanchem

Vanchem is situated at Ferrobank Industrial Park in Emalahleni Local
Municipality, Mpumalanga Province in the Republic of South Africa. Vanchem
is a primary vanadium producing facility with a beneficiation plant capable of
producing various vanadium oxides, ferrovanadium and vanadium chemicals.
Vanchem uses the salt roast beneficiation process, similar to the one used at
Vametco. The plant comprises: a core salt-roast processing plant, including 3
roasting kilns, an electric smelting ferrovanadium converter, an
alumino-thermic smelting facility, also located at Highveld, a vanadium
chemical plant; and a rail siding linking the plant with Bushveld deposits and
additional potential supply sources through the national rail network.

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