REG - Primorus Investments - Update on Mustang Energy Investment

Primorus InvestmentsAnnouncement

21/12/2021 07:00

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RNS Number : 2721W  Primorus Investments PLC  21 December 2021

Primorus Investments plc

 

("Primorus" or the "Company")

 

Backstop arrangements for the Investment in Mustang Energy PLC

 

Further to the RNS announcements dated 27 April 2021 and 14 July 2021,
Primorus Investments plc (AIM: PRIM) provides a brief update in relation to
its investment in Mustang Energy PLC ("MUST").

 

The litigation, notified within the 14 July RNS, is ongoing between the
relevant parties and may not be concluded prior to the 31 December 2021 (the
"Maturity Date").

 

Primorus would like to reiterate its statement from the RNS issued on the 27
April 2021, as follows:

 

"If Readmission does not take place by the Maturity Date, AIM-quoted vanadium
producer Bushveld Minerals Limited (whose subsidiary Bushveld Energy Limited
("BEL") is the majority shareholder in VRFBH) has agreed, as part of the
Fundraising, to issue new ordinary shares in its capital ("BMN Shares") to the
holders of the MUST Loan Notes in return for MUST transferring to BEL all of
its shares in VRFBH and paying a fee to BMN of an amount equal to 5 per cent.
of the MUST Fundraise (the "Backstop"). Primorus has the sole discretion to
elect to receive shares directly in the capital of VRFBH in lieu of BMN
Shares. Further details relating to the Backstop can be seen in the
announcement released by MUST."

 

Primorus has, at this stage, elected to receive BMN Shares if the Backstop
provision is enacted.

 

Upon receipt of the BMN shares, the board of Primorus will have sole
discretion over its ability to manage the BMN shareholding.

 

Notwithstanding the above, Primorus, MUST and BMN are continuing an open
dialogue with each other to try and find an alternative solution for all
parties prior to Backstop Date.

 

A further announcement will be issued when the final details of this
transaction are agreed.

 

For further information please contact:

 

 Primorus Investments plc

 Matthew Beardmore, Chief Executive Officer   +44 (0)20 8154 7907

 Nominated Adviser

 Cairn Financial Advisers LLP                 +44 (0) 20 7213 0880

 Sandy Jamieson/James Caithie

 

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