TIDMBMN
RNS Number : 3225I
Bushveld Minerals Limited
31 March 2020
1 April 2020
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Bushveld to hold 8.71 per cent of newly created Invinity Energy
Systems plc
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer, which owns high-grade vanadium assets in
South Africa ("Bushveld"), notes that redT energy plc ("redT") has
today received shareholder approval for its proposed merger with
Avalon Battery Corporation ("Avalon") (the "Merger"). The merged
entity will be named Invinity Energy Systems plc ("Invinity").
Bushveld entered into a Joint Venture agreement with redT on 9
March 2020 to form a Vanadium Financing Partnership to supply
vanadium electrolyte to be used in third party-owned Vanadium Redox
Flow Batteries ("VRFBs") projects developed by redT. The Joint
Venture agreement will be transferred to Invinity.
-- The Merger will create a leading player in the growing energy
storage market with a presence in North America, Europe,
sub-Saharan Africa and Asia.
-- Invinity is expected to have strong competitive advantages,
gain financial stability and form a base for rapid future
growth.
-- Invinity will be able to offer a VRFB that competes
effectively against other energy storage technologies.
On 1 November 2019, Bushveld announced it had agreed to support
the Merger with funding of US$5 million through a convertible loan
to Avalon. In accordance with the terms of the convertible loan, on
successful completion of the Merger the loan will convert into
shares in Invinity. The previously provided US$5 million loan
(together with the accrued interest and commitment fee) has been
converted into 302,978,063 Ordinary Shares at a price of 1.65 pence
in Invinity, representing up to 8.71 per cent of Invinity. The
shares issued to Bushveld are not subject to a lock-in
arrangement.
In addition to the funding from Bushveld, Invinity has raised
GBP7.9 million through an equity placing at 1.65 pence per
share.
Under the agreement, following the completion of the Merger,
Bushveld has a right to nominate a director to the Board of
Invinity, subject to Bushveld retaining at least 5 per cent of the
issued share capital of Invinity. The nomination of a director will
be done in due course. Bushveld will retain that right after one
year provided it beneficially owns at least 10 per cent of
Invinity. In addition, for so long as Bushveld beneficially owns at
least 20 per cent. of Invinity, it shall have a right to nominate
two members of the board of Invinity.
The investment is in line with Bushveld's strategy of partnering
with VRFB companies and part of the VRFB Investment Platform
("VIP"), as announced on 1 November 2019.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"At only a few months old, our VRFB Investment Platform is
already gathering momentum on the back of the investments made to
date.
"Invinity starts its journey with a strong project pipeline
already in place, one which it plans to grow even more in the
future. Despite the global impact of the Covid-19 pandemic, the
fundamental need for long duration energy storage to support the
energy transition has not changed. The benefit to Bushveld of
supporting this downstream vanadium-based industry is already
becoming clear, and Bushveld continues to support the growth and
its participation in the energy storage industry."
ENDS
Inquiries: 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 / Soltan
Tagiev
Abigail Wayne / Richard Parlons
+44 (0) 20 7418
Peel Hunt LLP Joint Broker 8900
Ross Allister / Alexander
Allen
+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
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; 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.
Bushveld Energy, the Company's energy storage solutions provider,
plays a leading role in the development and promotion of the role
of vanadium in this market.
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 at 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.
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, meeting the demand for utility scale energy storage in
Africa by leveraging South Africa-mined and beneficiated
vanadium.
http://www.bushveldenergy.com
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END
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