Bushveld Minerals Limited Resolution of Unprotected Industrial Action (6057B)

TIDMBMN

RNS Number : 6057B

Bushveld Minerals Limited

21 September 2018

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

21 September 2018

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Resolution of Unprotected Industrial Action

Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, announces that it has reached agreement with the Association of Mineworkers and Construction Union ("AMCU") in respect of the matters that led to the unprotected industrial action. Accordingly, the Company is pleased to announce that the unprotected industrial action has been called off and workers have started returning to work.

The Company and AMCU have agreed that:

-- The settlement agreement, signed between Bushveld Vametco Alloys ("Vametco") and AMCU in May 2018 in respect of payments in lieu of Employee Share Options Scheme ("ESOPS") for the period 2013 and December 2017, is valid and recognised.

-- Vametco will pay employees an amount in lieu of ESOPS for the year 2018 on the same basis as the ESOPS payment made as part of the May 2018 settlement agreement. The payments (the "2018 ESOPS payment") will be structured as a two-part payment:

o A payment of R15,000 (post-tax) shall be paid to each employee in respect of the period 01 January to 30 June 2018. This amount shall be paid on 28 September 2018.

o A second payment in respect of the period 01 July 2018 to 31 December 2018 shall be payable after the release of the financial results of Bushveld Vametco Alloys Limited for the FY 2018 which is expected to be paid by 31 March 2019.

The 2018 ESOPS payments will be made only to permanent employees and fixed term employees who have been in the employment of Vametco since 01 January 2018 and continue to be in the employment of the Company at the time of ESOPS payments.

The Company and AMCU have further committed to accelerate discussions for establishing a framework for a new ESOPS structure to be implemented from 1 January 2019 as well as processes to deal with all remaining labour issues going forward, including clear mechanisms of escalating disputes to regional and national union leadership as well as to the Company's Management team.

The Company will continue to update the market as appropriate in this regard.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

"We are delighted that we have been able to reach an agreement that results in the mining operations resuming. This is a positive outcome for all parties, ensuring that the resource continues to bear fruit while the Company strives towards building a sound partnership with all employees.

"We are particularly pleased that the agreement upholds all previous engagements and agreements entered into by the Company and workers including the May 2018 settlement agreement. In addition, the agreement affirms the important role of the workers as key stakeholders for the Company, and we are pleased they will share in the success of Bushveld Minerals.

"Finally, the settlement agreement includes provisions designed to discourage any future participation in unprotected industrial actions by the workers at the risk of losing the participation of any ESOP payments. We are glad that all parties have reached a mutual beneficial agreement and we can now look forward to ending the year with a solid performance."

ENDS

Enquiries: info@bushveldminerals.com

 
                                                          +27 (0) 11 268 
Bushveld Minerals                                          6555 
Fortune Mojapelo, Chief Executive 
 Officer 
Chika Edeh, Head of Investor 
 Relations 
 
SP Angel Corporate Finance          Nominated Adviser     +44 (0) 20 3470 
 LLP                                 & Broker              0470 
Ewan Leggat 
Richard Morrison 
 
Alternative Resource Capital        Joint Broker 
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Rob Collins                                                9001 
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Alex Wood                                                  9004 
 
Tavistock                           Financial PR 
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Charles Vivian / Gareth Tredway                            3150 
 
Lifa Communications                 Financial PR (South 
                                     Africa) 
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Gabriella von Ille                                         907

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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September 21, 2018 11:15 ET (15:15 GMT)

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