TIDMBMN
RNS Number : 6935W
Bushveld Minerals Limited
27 April 2021
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 April 2021
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Update on Enerox GmbH Investment
Bushveld Minerals Limited (AIM: BMN), the AIM-quoted, integrated
primary vanadium producer and energy storage solutions provider,
with ownership of high-grade assets in South Africa ("Bushveld
Minerals"), is pleased to announce an investment by Mustang Energy
Plc ("Mustang"; "LON: MUST"), into VRFB Holdings Limited ("VRFB-H")
to acquire an indirect interest of 11.05 per cent in Enerox GmbH
("Enerox"). Enerox is a Vanadium Redox Flow Battery ("VRFB")
manufacturer providing grid scale and micro-grid energy storage
solutions. The Company also announces the completion of the
investment by VRFB-H into the 100 per cent holding company for
Enerox, Enerox Holdings Limited ("EHL").
Highlights:
-- As previously announced on 1 April 2021, a consortium of
investors in Enerox are investing US$30 million to scale up VRFB
production capacity to 30MW by 2022.
-- Bushveld Energy holds an indirect interest of 25.25 per cent
in Enerox through a 50.5 per cent holding in VRFB-H, which in turn
holds 50 per cent of EHL an entity that wholly owns Enerox.
-- LSE-listed Mustang, a Special Purpose Acquisition Company
which intends to acquire interests in energy storage and stationary
battery assets, has entered into a legally binding investment
agreement with Bushveld Minerals, VRFB-H and its shareholders.
-- Mustang has invested approximately US$7.5 million to
subscribe for a 22.10 per cent interest in VRFB-H, to be deployed
into Enerox, and has become a new shareholder in VRFB-H. Mustang
has funded its investment by way of an issue of US$8 million
unsecured convertible loan notes at a 10 per cent coupon to certain
investors ("Mustang Capital Raise").
-- On 31 March 2021 Bushveld Energy invested US$5.0 million into
VRFB-H and has invested approximately another US$2.7 million to
retain its 50.5 percentage holding of VRFB-H.
-- In turn, VRFB-H has invested US$15 million into EHL to fund
its part of the US$30 million investment into Enerox.
The investment of VRFB-H into Enerox is in line with Bushveld
Minerals' strategy to mobilise capital to scale up growth and
capacity of VRFB manufacturers, either through self-funding
mechanisms or through funding sharing arrangements such as this
agreement with Mustang. This strategy has been recently and
successfully illustrated by Bushveld Minerals' investment and
subsequent realisation of an interest in AIM-quoted Invinity Energy
Systems.
The Mustang Capital Raise, and the concurrent acquisition by
Mustang of shares in the capital of VRFB-H, constitutes a reverse
takeover under the Financial Conduct Authority's Listing Rules and
will require the publication of a prospectus and readmission of
Mustang to trading by no later than 31 December 2021.
In circumstances where the Mustang readmission does not take
place by 31 December 2021, Bushveld Minerals has agreed to issue
new ordinary shares in its capital to Mustang's noteholders (the
"Backstop") in return for:
-- Mustang transferring to Bushveld Energy all of Mustang's
shares in VRFB-H.
-- Mustang paying a fee to Bushveld Minerals of an amount equal
to 5 per cent of the Mustang Capital Raise (including both
principal and interest), to be satisfied by the issue of new
ordinary shares in the capital of Mustang at a price of 20 pence
per share (the "Backstop Fee"). The Backstop Fee is payable in the
event of readmission not occurring by the aforesaid date or
immediately prior to completion of readmission.
Certain of Mustang's noteholders have the discretion to elect
not to receive new Bushveld Minerals shares and instead receive
shares directly in the capital of VRFB-H.
Fortune Mojapelo, CEO of Bushveld Minerals, commented:
"We are pleased to complete the investment into Enerox by VRFB-H
of the US$15 million announced on 1 April 2021 as part of a US$30
million financing to scale up Enerox's manufacturing capacity. As
previously mentioned, we believe that this additional capital will
place Enerox on the path to becoming a major player in the
stationary energy storage industry, while further cementing VRFB
technology in this rapidly growing sector. We are also pleased to
welcome Mustang as a shareholder in VRFB-H. Its listing on the
London Stock Exchange and consequent access to public equity
capital markets combined with its strategy to invest in the
stationary energy storage value chain and renewable energy
projects, make them an especially attractive partner for
VRFB-H."
ENDS
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals Limited 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 / Charlie
Bouverat
Grant Baker / Richard Parlons
+44 (0) 20 7418
Peel Hunt Limited Joint Broker 8900
Ross Allister / Alexander
Allen
Tavistock Financial PR
Charles Vivian / Gareth Tredway
/ +44 (0) 207 920
Edward Lee 3150
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary
vanadium producer. It is one of only three operating primary
vanadium producers, owning 2 of the world's 4 operating primary
vanadium processing facilities. The Company produced more than
3,600 metric tonnes of Vanadium in 2020. The Company is funded to
grow its production to more than 6,800 mtVp.a. by 2025 (almost
double the achieved production in 2020), and could, subject to
funding, increase its production to more to 8,400 mtVp.a. over the
same period.
Bushveld Minerals owns a diversified vanadium product portfolio
serving the needs of the steel, energy and chemical sectors.
Bushveld Minerals participates in the entire vanadium value chain
through its two main pillars: Bushveld Vanadium, which mines and
processes vanadium; and Bushveld Energy, an energy storage
solutions provider. 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.
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 the
requirement for electricity in Africa touches on both the paramount
potential for social transformation and 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 ("VRFB"). 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. Bushveld Energy's business model embraces a number of
activities along the VRFB value chain, including electrolyte
manufacturing, investment in VRFB manufacturing, battery deployment
and project development.
http://www.bushveldenergy.com
About Mustang Energy
Mustang Energy PLC is a Special Purpose Acquisition Company
(SPAC), whose shares are listed on the Standard List of the Main
Market of the London Stock Exchange, which intends to utilise its
strong management experience and strategic relationship with Acacia
Resources Limited, the Company's largest shareholder, to acquire
interests in energy storage and stationary battery assets.
http://www.mustangplc.com/
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END
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