TIDMBMN
RNS Number : 4130G
Bushveld Minerals Limited
29 March 2022
Market Abuse Regulation ("MAR") Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
29 March 2022
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Update on the VRFB Holdings Limited ("VRFB-H") investment by
Mustang Energy Plc ("Mustang")
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, hereby
provides a further update, following the announcement on 25 March
2022.
1. Bushveld, Mustang, VRFB-H, Bushveld Energy Limited and Acacia
Resources Limited entered into an Amendment Deed relating to the
Investment Agreement dated 26 April 2021 and as amended and
restated on 18 January 2022, in terms of which the date by which
the Mustang CLNs noteholders must exercise of the Backstop
arrangement was extended to five business days of 31 July 2022 (if
Mustang is not readmitted to listing and trading on the Standard
List of the London Stock Exchange ("LSE") by 31 July 2022);
2. Bushveld issued a convertible loan note ("BMN CLNs") to
Primorus Investments Plc ("Primorus") on 28 March 2022 pursuant to
the previously announced Backstop arrangement with Primorus and
Mustang. The conversion mechanism for the BMN CLN was set out in
the Company's announcement on 19 January 2022 and the relevant
supplementary details are as follows:
-- The nominal amount of the BMN CLNs is GBP1,208,988, being the
nominal value of the Mustang CLNs issued to Primorus of US$1.5
million plus interest accrued thereon as at 28 March 2022 of
US$136,849.32 (being an aggregate amount of US$1,636.849.32),
converted at an exchange rate of US$1.3539/GBP;
-- Unless previously redeemed by the Company, and subject to a
conversion notice being received by the Company at least three
business days prior to the relevant conversion date, a tranche
consisting of one sixth of the aggregate amount of the BMN CLNs may
be converted by Primorus into BMN shares at any time within a
conversion period (the six conversion periods being: 28 February
2022 to 14 April 2022; 15 April 2022 to 14 July 2022; 15 July 2022
to 14 October 2022; 15 October 2022 to 16 January 2023; 17 January
2023 to 14 April 2023;15 April 2023 to 14 July 2023) at a
conversion price of GBP0.098987, being the volume weighted average
price of a share as shown on Bloomberg over the 20 trading days
prior to (and excluding) 28 February 2022.
3. Mustang has cancelled the Mustang CLNs issued to Primorus on
26 April 2021 and issued US$1,500,000 10 per cent convertible loan
notes to Bushveld, subject to and with the benefit of the
provisions contained in the Loan Note Instrument entered into by
Mustang on 26 April 2021 as amended and restated on 18 January 2022
and as further amended and restated between Mustang and the CLNs
noteholders on 28 March 2022. The conversion price of the Mustang
CLNs is GBP0.18; and
4. Mustang will pay Bushveld a Backstop Fee of US$32,737
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
" The investment by Mustang into VRFB-H was part of the
Company's strategy to leverage its relationships and capital
through VRFB-H's in support of Enerox Holdings Limited's ("EHL")
capital requirements.
Mustang could not proceed with preparation and issuing of the
required prospectus in terms of the LSE until the litigation,
initiated by VRFB-H's partner in EHL, had been resolved,
necessitating the extension of the deadline by which Mustang is to
issue its prospectus in respect of its investment into VRFB-H. As
previously reported this litigation has now been resolved.
I am pleased with the vote of confidence shown by the Mustang
investors to extend the deadline for the publication of the Mustang
prospectus to 31 July 2022. The decision of Primorus, one of the
four investors into Mustang, to exercise the Backstop arrangement
is noted and respected. We are appreciative of the agreement to
receiving the BMN CLN in return for its Mustang CLN. The BMN CLN
has been designed to limit any potential overhang on the BMN share
price by structuring any conversion in six equal tranches over a
period of 18 months."
ENDS
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals Limited 6555
Fortune Mojapelo, Chief Executive
Officer
Andrew Mari, Investor Relations
Nominated Adviser +44 (0) 20 3470
SP Angel Corporate Finance LLP & Broker 0470
Richard Morrison / Charlie Bouverat
Grant Baker / Richard Parlons
Tavistock Financial PR
Gareth Tredway / Tara Vivian-Neal/ +44 (0) 207 920
Adam Baynes 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. In 2021, the Company produced 3,592
mtV, representing approximately three per cent of the global
vanadium market. With a diversified vanadium product portfolio
serving the needs of the steel, energy and chemical sectors, the
Company participates in the entire vanadium value chain through its
two main pillars: Bushveld Vanadium, which mines and processes
vanadium ore; and Bushveld Energy, an energy storage solutions
provider. Bushveld Vanadium is targeting to materially grow its
vanadium production and achieve an annualised steady state
production run rate of between 5,000 mtVp.a. and 5,400 mtVp.a by
the end of 2022, from projects currently being implemented. Beyond
that, pre-feasibility studies are in progress to determine the
optimal path to increase production even further to a steady state
production run rate of between 6,400 mtVp.a. and 6,800 mtVp.a. in
the medium-term and to a steady state production run rate of 8,400
mtVp.a in the long term.
Bushveld Energy is focused on developing and promoting the role
of vanadium in the growing global energy storage market through the
advancement of vanadium-based energy storage systems, specifically
Vanadium Redox Flow Batteries ("VRFBs").
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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March 29, 2022 06:45 ET (10:45 GMT)
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