TIDMBMN
RNS Number : 5403X
Bushveld Minerals Limited
19 December 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.
19 December 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Update on investment in Enerox GmbH ("Enerox")
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 provide an update on the
investment in Enerox GmbH ("Enerox"), previously announced on 12
November 2019, by a consortium of investors (the "Consortium"). The
investment in Enerox is in line with Bushveld Minerals' strategy of
partnering with Vanadium Redox Flow Battery ("VRFB") companies and
part of the VRFB Investment Platform ("VIP"), as announced on 1
November 2019.
The Consortium, which currently includes Bushveld Minerals, has
signed an initial sale and purchase agreement ("ISPA"). In terms of
the ISPA, the members of the Consortium have acquired, in equal
proportions, 24.9 per cent of the issued share capital of Enerox
for EUR150,000 from CellCube Energy Storage Systems Inc (the
"Seller"). In addition to this amount, to date, the Consortium has
invested EUR600,000 in Enerox to fund ongoing working capital. The
Consortium has committed to make three further staged payments of
EUR300,000 in December, January and early February which will bring
the total initial investment in Enerox to EUR1.65 million. In due
course Bushveld Minerals intends that Bushveld Energy Limited, an
84 per cent owned subsidiary of Bushveld Minerals, will take its
place in the Consortium.
As previously announced, the Consortium has been granted
exclusivity until the end of February 2020 to complete due
diligence and now expects to negotiate a subsequent main sale and
purchase agreement to acquire the remaining issued share capital of
Enerox for a further consideration of EUR10.85 million on a debt
free basis within the same timeframe. Whilst it remains a minority
shareholder in Enerox, in addition to the call and put arrangements
previously announced, Bushveld Minerals has been granted customary
minority protections under the ISPA.
Bushveld Minerals anticipates contributing not more than 50 per
cent of the funds to be invested by the Consortium and is
considering additional investors to participate as part of the
Consortium.
The Enerox investment is part of Bushveld Minerals' strategy of
partnering with VRFB Original Equipment Manufacturers ("OEMs") that
incudes supply of vanadium and electrolyte, deployments and
investment. The investment strategy is implemented through the VIP,
which seeks to make significant minority investments into high
potential VRFB OEMs. The VIP allows for the flow of investment into
VRFB OEMs and provides investors with access to the rapidly growing
energy storage market.
Further announcements will be made in due course.
Fortune Mojapelo, CEO of Bushveld Minerals, commented:
"This is another positive step towards the Consortium's
acquisition of Enerox, and we are pleased with the progress.
"Enerox is one of the most established VRFB OEMs with over 130
global installations to date. Bushveld's participation in this
investment enhances our VIP, while providing additional strength to
the Company's vertical integration strategy, supporting VRFB
adoption and helping to grow the overall vanadium market."
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
Richard Morrison / Stephen
Wong
Abigail Wayne / Richard Parlons
+44 (0) 20 7418
Peel Hunt LLP Joint Broker 8900
Ross Allister / James Bavister
+44 (0) 20 7236
BMO Capital Markets Limited Joint Broker 1010
Tom Rider / Michael Rechsteiner
/
Neil Elliot
+44 (0) 20 7920
Tavistock Financial PR 3150
Charles Vivian / Gareth Tredway
/
Edward Lee
Financial PR (South +27 (0) 11 502
Brunswick Africa) 7300
Miyelani Shikwambana
ABOUT BUSHVELD MINERALS LIMITED
The Company is a low-cost, vertically integrated primary
vanadium producer with a diversified vanadium product portfolio,
currently supplying approximately 3,000 mtVp.a of the global
vanadium market with plans to grow its production to more than
8,400 mtVp.a within the next 5 years. Through Bushveld Energy, the
Company's energy storage solutions provider, Bushveld Minerals
plays a pivotal role in the development and promotion of Vanadium
Redox Flow Battery ("VRFB") technology.
Bushveld Minerals' vertical integration strategy allows the
Company to have a significant role across the upstream and
downstream vanadium value chain, and provides a natural hedge
against vanadium price volatility, being in a solid position
throughout the vanadium price cycle.
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; 100 per cent of
Bushveld Vanchem, a primary vanadium processing facility with a
beneficiation plant; 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. 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 may be
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.
About Bushveld Energy Limited
Bushveld Energy is a leading energy storage solutions provider,
focusing on the African market. Bushveld Energy recognises that
electricity in Africa intersects paramount potential for social
transformation with an immense commercial opportunity.
Launched in 2016, Bushveld Energy is focused on developing and
promoting the role of vanadium in the growing global energy storage
market through application in vanadium redox flow batteries. Its
near term strategy is to deploy several VRFB systems as part of its
longer term vision to become a significant electricity storage
provider in Africa by 2020, meeting the demand for utility scale
energy storage in Africa by leveraging South Africa-mined and
beneficiated vanadium.
Detailed information on the Company and progress to date can be
accessed on the website www.bushveldenergy.com.
About Enerox
Enerox is the battery subsidiary of CellCube, specializing in
the planning, development and turnkey construction of Utility Scale
projects worldwide. It is one of the world's first and largest
developers, manufacturers and distributors of vanadium redox flow
batteries, headquartered in Wiener Neudorf, Austria.
With more than 136 installations across five continents, Enerox
has substantial industry and operational experience. The technology
has proven to deliver long lasting energy storage (now rated for 30
years) and infrastructure for deployment in a wide range of
applications including: grid storage and micro grids; storage
collocated with renewables such as solar and wind; time shift;
diesel power replacement; commercial and industrial solutions such
as farming; electrical vehicle charging stations; industrial
plants; office buildings and emergency power sources.
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
UPDKMMMZDLNGLZM
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