Bushveld Minerals Limited Update on Black Economic Empowerment Ownership (1905C)
September 27 2018 - 7:30AM
UK Regulatory
TIDMBMN
RNS Number : 1905C
Bushveld Minerals Limited
27 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.
27 September 2018
Bushveld Minerals Limited
("Bushveld" or the "Company")
Update on Black Economic Empowerment Ownership
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated
primary vanadium producer, with ownership of high grade vanadium
assets, is pleased to announce that it has completed the sale of a
1% equity interest in Bushveld Vametco Holdings (Proprietary)
Limited ("Vametco") to its two Black Economic Empowerment
shareholders Business Ventures Investments No. 1833 (Proprietary)
Limited and Business Ventures Investments No. 973 (Proprietary)
Limited ("BEE Shareholders") for a total cash consideration of
R1,780,000.
The commitment to conclude the transaction at the agreed
consideration was made by the previous Strategic Minerals
Corporation ("SMC") owners, prior to Bushveld's acquisition, with a
view to meeting the Black Economic Empowerment equity requirements
as set out in the current Mining Charter. Accordingly, the sale
increases Vametco's Black Economic Empowerment shareholding from
the current 25.0% to 26.0%, ensuring Vametco is fully compliant
with the minimum Black Economic Empowerment ownership requirements
of the current Mining Charter. Bushveld's shareholding in Vametco,
through its wholly owned subsidiary SMC, accordingly reduces to
74%.
Terms of the sale agreement are as follows:
-- Total 1.0% interest acquired to increase total BEE
Shareholders interest to 26.0% for a total cash consideration of
R1,780,000;
-- The R1,780,000 consideration is paid in the form of vendor
financing provided to BEE Shareholders by Bushveld to be repaid to
from future dividends payable to BEE Shareholders;
-- Strategic Minerals Corporation and Bushveld's ownership reduced from 75.0% to 74.0%.
Commenting on the transaction, Fortune Mojapelo said "Vametco's
mining right underpins the value of the operation to Bushveld and
this transaction contributes to the security thereof in meeting our
licence to operate. While the transaction consideration, which was
agreed between the parties prior to Bushveld's acquisition of SMC,
reflects a material discount to value, the significance of the
Company's compliance with South African mineral laws and the Mining
Charter cannot be overstated."
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
+44 (0) 207 186
Rob Collins 9001
+44 (0) 207 186
Alex Wood 9004
Tavistock Financial PR
+44 (0) 207 920
Charles Vivian / Gareth Tredway 3150
Lifa Communications Financial PR (South
Africa)
+27 (0) 711 121
Gabriella von Ille 907
--
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium
producer, with ownership of high grade vanadium assets.
The Company's flagship vanadium platform includes a 75 per cent
controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a
primary vanadium mining and processing company; the Mokopane
Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owning high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage solutions provider.
Whilst the demand for vanadium remains largely anchored in the
steel industry, Bushveld Minerals believes there is strong
potential for an imminent and significant global vanadium demand
surge from the fast-growing energy storage market, particularly
through the use and adoption of Vanadium Redox Flow Batteries.
While the Company's focus is on vanadium operations and the
development and promotion of VRFBs, it has additional investments
in coal, power and tin.
The coal platform comprises the wholly-owned Imaloto Coal
Project, which is being developed as one of Madagascar's leading
independent power producers. The Company's tin interests are held
through its shareholding in AIM listed AfriTin Mining Limited.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects. Detailed
information on the Company and progress to date can be accessed on
the website www.bushveldminerals.com
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contact rns@lseg.com or visit www.rns.com.
END
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