TIDMBMN
RNS Number : 6083Q
Bushveld Minerals Limited
21 October 2019
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 October 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Mokopane Mining Right Application Granted
Bushveld Minerals Limited (AIM:BMN), the AIM quoted, integrated
primary vanadium producer, with ownership of high grade vanadium
assets in South Africa, is pleased to announce that the Department
of Mineral Resources and Energy ("DMRE") has granted a mining right
to Pamish Investments No. 39 (Pty) Ltd ("Pamish"), in respect of
the five farms Vliegekraal 783 LR, Vogelstruisfontein 765 LR,
Vriesland 781 LR, Schoonoord 786 LR and Bellevue 808 LR situated in
the District of Mogalakwena, Limpopo, which make up the Mokopane
Project.
The Company will now finalise the financial provision
requirements and concurrently implement an agreed revised
shareholding structure, in accordance with Mining Charter III, that
will see five per cent of the equity in Pamish sold by the existing
shareholders (Bushveld Minerals and Izingwe Capital Limited) to the
Bakenberg Community Trust, a trust established for the benefit of
the local communities. The five per cent is to be vendor-financed
and repaid from future proceeds from the mine. Bushveld Minerals'
interest in the Mokopane Project will accordingly reduce from 64
per cent to 60.8 per cent, while Izingwe's shareholding reduces
from 36 per cent to 34.2 per cent. Pamish has further committed to
allocate an additional five per cent to an Employee Share Ownership
Scheme once the mine is operational, which will result in Bushveld
Minerals ultimately holding 57.6 per cent and Izingwe 32.4 per
cent. The mining right will be executed and issued by the regional
office of the DMR, on a date still to be advised.
Mokopane is one of the world's largest primary vanadium
resources, with a 298 Mt JORC compliant resource and a weighted
average V(2) O(5) grade of 1.75 per cent in magnetite (1.41 per
cent in-situ). The Mokopane deposit is a layered orebody along a
5.5 km north-south strike at a dip of between 18 degrees and 22
degrees west. The project comprises three adjacent and parallel
magnetite layers namely the Main Magnetite Layer ("MML"), the MML
Hanging Wall ("MML-HW") layer and the AB Zone. 298 Mt (JORC)
resources and reserves run across three parallel overlying
magnetite layers with grades ranging from 1.6 per cent to over 2
per cent V(2) O(5) as follows:
-- MML: 52 Mt @ 1.48 per cent V(2) O(5) (1.75 per cent V(2) O(5)
in magnetite);
-- MML-HW & Parting: 233 Mt @ 0.8 per cent V(2) O(5)
(1.5-1.6 per cent V(2) O(5) in magnetite); and
-- AB Zone: 12 Mt @ 0.7 per cent V(2) O(5) (greater than 2 per
cent V(2) O(5) in magnetite).
The mining right allows for the extraction of several other
minerals over the entire Mokopane project resource area, including,
titanium, phosphate, platinum group metals, gold, cobalt, copper,
nickel and chrome.
As previously announced, MSA has been appointed by Bushveld
Minerals to undertake the definitive feasibility study ("DFS") to
mine the MML and provide a resources and reserves assessment. The
DFS will be focused on Mokopane being the primary feedstock
supplier to Vanchem and does not include the development of
Mokopane into an integrated mine and processing plant. The Company
has appointed an owner's team to oversee the DFS. The DFS is
expected to be completed during the second half of 2020.
Mokopane is positioned to become a primary source of feedstock
for Vanchem, creating a fully integrated vanadium producing
business in a shorter time frame and at a lower cost, as opposed to
a standalone operation. The expedited Mokopane development, as a
possible primary feedstock supply to Vanchem, does not remove the
optionality of supplying ore to other primary or secondary
producers worldwide, and/or to develop Mokopane into an integrated
mine and processing plant.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"The granting of a mining right application is a significant
milestone in the development of the Mokopane Vanadium Project. It
comes at an important time as the Company executes its growth
strategy. The Mokopane Project is one of the best and most
developed greenfield primary vanadium projects that is well
positioned to support the Company's growth strategy as primary
supply to Vanchem, potential supply of ore to other third party
processing facilities, all the while retaining the option to
develop downstream primary processing capacity as the market
develops and grows.
The Company will be executing, and the Department of Mineral
Resources and Energy will be issuing the mining right in due
course.
"I wish to thank everyone who has been involved in securing this
important milestone which brings the Mokopane project much closer
to production with significant job creation and overall economic
benefits for the company and all its associated stakeholders."
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
Richard Parlons
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Jeffrey Couch / Tom Rider
Michael Rechsteiner / Neil
Elliot
+44 (0) 20 7418
Peel Hunt LLP Joint Broker 8900
Ross Allister/ James Bavister
David McKeown
Tavistock Financial PR
+44 (0) 207 920
Charles Vivian / Gareth Tredway 3150
Brunswick Financial PR (South
Africa)
+27 (0) 11 502
Miyelani Shikwambana 7300
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 74 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 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.
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies", the information contained within the announcement
has been reviewed and approved by Professor Richard Viljoen.
Professor Richard Viljoen has more than 30 years' experience in the
mining industry, including 15 years as chief consulting geologist
for Gold Fields of South Africa. Notable past experience includes
the development of significant mines including Northam Platinum and
the Leeudoorn and Tarkwa gold mines, identifying and developing a
significant platinum deposit in the Bushveld Complex for Akanani
Resources as well as acting as consultant for exploration and
mining companies in Canada, Mexico, Venezuela, India and China in
the fields of base metals, gold and platinum. Professor Richard
Viljoen has extensive experience relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined under the JORC Code (2012). Professor Richard Viljoen
consents to the inclusion in this announcement of the matters based
on his information in the form and context in which it appears.
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END
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