TIDMBMN
RNS Number : 9007U
Bushveld Minerals Limited
03 August 2020
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.
3 August 2020
Bushveld Minerals Limited
("Bushveld Minerals", "Bushveld" or the "Company")
Investment in Enerox GmbH
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated
primary vanadium producer and energy storage provider, with
ownership of high-grade assets in South Africa, announces the
acquisition by Enerox Holdings Limited ("EHL") of a further 65.1
per cent of the share capital of Enerox GmbH ("Enerox"), as
anticipated in its announcement on 19 December 2019. EHL is a newly
incorporated investment vehicle formed by a consortium of
investors, including Bushveld Energy Limited ("BEL") (an 84 per
cent owned subsidiary of Bushveld).
The investment is in line with the Company's strategy of
establishing a VRFB Investment Platform ("VIP") to lead investments
in VRFB original equipment manufacturers ("OEMs") with attractive
upside potential. The VIP is one of multiple avenues of partnering
with OEMs.
-- BEL and its initial investments will play a catalyst role and
mobilise additional capital from third party funders to establish
an investment capital pool to support VRFB OEM growth.
-- These partnerships support BEL's business model, that
includes electrolyte manufacturing and rental, VRFB manufacturing
and deployments.
-- BEL intends to own a minority interest in EHL, in line with
its strategy of holding minority positions in select VRFB OEMs and
being a catalyst to mobilise third party financing and assist the
scale up VRFB OEMs.
Rationale of the investment in Enerox
-- The Enerox VRFB product is one of the most widely deployed
over the past 10 years, offering a unique value proposition in the
industry.
-- Enerox has a global customer base with over 130 field
installations over the past 10 years across five continents. The
technical due diligence process revealed that multiple batteries
installed in 2008 and 2009 continue to still be in operation - a
period of over 10 years.
-- Enerox has a newly redesigned VRFB product orientated around
a modular and stackable 40ft container base configuration that
increases standardisation to reduce costs of manufacturing, field
installation and maintenance.
-- Expected diversification of Bushveld's customer and revenue
base with preferential vanadium supply rights into energy storage
products to support Bushveld's mining, processing and chemicals
activities.
-- Under a separate agreement proposed to be entered into
between Bushveld and Enerox, it is intended that Bushveld will be
awarded a right of first refusal to supply vanadium products to
Enerox on the same material terms as any other supplier. This would
provide a future hedge to Bushveld's position against volatility in
the vanadium price once the VRFB market has developed.
-- The second quarter of 2020 saw significant major developments in the VRFB sector, including announcements of new battery projects, manufacturing capacity and M&A activity, buoyed by the impact of the Covid-19 pandemic in accelerating the energy transition globally.
Renegotiated investment terms
Bushveld is pleased to announce that the original investment
consortium , which first acquired 24.9 per cent of the issued share
capital of Enerox (and will transfer such shares to EHL) and have
already jointly invested EUR2.6 million into Enerox, have now,
through EHL, acquired an additional 65.1 per cent in Enerox from
CellCube Energy Storage Systems Inc (the "Seller") pursuant to a
sale and purchase agreement ("SPA") dated 31 July 2020. Under the
SPA, EHL will pay a nominal amount for the Enerox shares but
provide a new secured shareholder loan facility of EUR3.7 million
to Enerox (the "Shareholder Loan Facility"). The Shareholder Loan
Facility is designed to provide working capital and funds for
capital expenditure to enable Enerox to reach sustainable
commercial production. The facility will be secured on certain
assets of Enerox, although the security will be subordinated to
security provided to Enerox's current lender, FGP Protective
Opportunity Master Fund SPC.
EHL will hold 90 per cent of the share capital in Enerox, while
the Seller will remain as a 10 per cent shareholder. In line with
BEL's VIP strategy to hold minority investments in VRFB companies,
it is seeking to procure third-party investors into EHL to assume
BEL's funding responsibilities in terms of the SPA.
Should EHL not have funded Enerox an aggregate of EUR3.7 million
by 31 December 2021, then the Seller will have the right to buy
back for nominal value such proportion of 39 per cent of the share
capital of Enerox as is equivalent to the shortfall in funding.
Prior to EHL's involvement, Enerox's latest audited financials
showed the company made a loss of EUR4.73 million in the year ended
30 June 2019, had total assets of EUR4.5 million and net
shareholder's equity of EUR0.56 million as at 30 June 2019 .
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"We are excited to announce the closing of this transaction
which is in line with our stated strategy to play a catalytic role
in mobilising financing to scale up VRFB manufacturing capacity.
Despite the global challenges caused by the Covid-19 pandemic, the
emerging push to combine efforts to stimulate the global economy
and an accelerated energy transition to clean energy has made the
timing of this investment ideal.
"Enerox is a leader in this space and with the injection of
these new funds it will be able to strengthen its position and take
advantage of further growth opportunities. It follows our
investment into Invinity Energy Systems, which has performed
exceptionally well. Thus, Bushveld continues its strategy of
supporting growing VRFB companies, partnering with external
investors to drive growth capital into the sector and ensuring the
growth of vanadium demand in energy storage."
ENDS
Inquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance
LLP Nominated Adviser & Broker +44 (0) 20 3470 0470
Richard Morrison / Soltan
Tagiev
Abigail Wayne / Richard Parlons
Peel Hunt LLP Joint Broker +44 (0) 20 7418 8900
Ross Allister / Alexander
Allen
BMO Capital Markets Limited Joint Broker +44 (0) 20 7236 1010
Tom Rider/ Michael Rechsteiner
/
Neil Elliot
Tavistock Financial PR +44 (0) 20 7920 3150
Charles Vivian / Gareth Tredway
/
Edward Lee
Brunswick Financial PR (South Africa) +27 (0) 11 502 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
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
MSCEXLBBBVLEBBZ
(END) Dow Jones Newswires
August 03, 2020 02:00 ET (06:00 GMT)
Bushveld Minerals (AQSE:BMN.GB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bushveld Minerals (AQSE:BMN.GB)
Historical Stock Chart
From Jul 2023 to Jul 2024