TIDMBMN
RNS Number : 0069A
Bushveld Minerals Limited
21 December 2017
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.
21 December 2017
Bushveld Minerals Limited
("Bushveld" or the "Company")
Completion of Acquisition and Readmission to AIM
Bushveld Minerals Limited (AIM: BMN), a mineral project
development company with a portfolio of vanadium and coal assets in
Southern Africa and a minority investment in tin, is pleased to
announce the Completion of the acquisition of 55 percent of
Bushveld Vametco, Limited ("BVL") ("the Acquisition"), the issue of
of 54,766,364 new ordinary shares in the Company (the
"Consideration Shares") to Yellow Dragon Holdings Limited ("Yellow
Dragon" or the "Seller") and the admission to trading on AIM of the
enlarged issued share capital will be effective at 8 a.m today
("Admission").
Fortune Mojapelo, Chief Executive of Bushveld commented:
"We are delighted to have completed this acquisition before the
end of the year. Vametco has, to date, illustrated its strong cash
generation capability and, with the expansion initiatives underway,
the drive towards a lower cost base which, in a rising vanadium
price environment, ensures the transaction is value accretive to
our shareholders. We go into 2018 in a strong position and look
forward to the future with confidence."
Highlights of the Acquisition:
Acquisition details:
-- The Company has acquired all of the ordinary shares in BVL
not currently owned by the Group from Yellow Dragon for an initial
purchase price of US$11.1 million to be satisfied on Admission
-- The initial purchase price of US$11.1 million consists of a
cash payment of US$4.5 million and the issue of the Consideration
Shares, credited as fully paid, at 9.06 pence per share. The
Consideration Shares will represent 6.25 per cent. of the enlarged
issued share capital of the Company and will be issued credited
fully paid.
-- In addition, there will be two deferred payments of US$0.6
million each, payable following publication of the accounts for
Vametco Holdings Limited for respectively the years ending 31
December 2018 and 31 December 2019, and a further payment to be
made on publication of the Vametco Holdings Limited accounts for
the year ended 31 December 2020 to be calculated by reference to
the EBITDA of Vametco Holdings Limited for the period covered by
its 2020 accounts.
-- Following completion of the Acquisition, Yellow Dragon will
hold 79,766,364 shares representing 9.11 per cent of the Enlarged
Issued Share Capital
Rationale for the Acquisition
The Acquisition will increase the Company's indirect interest in
Vametco Holdings from 26.6 per cent. to 59.1 per cent enabling it
to fully consolidate the Strategic Minerals Corporation ("SMC")
Group in its financial statements. The Directors believe that the
Acquisition will benefit the Company and its shareholders for the
following reasons:
-- Increased exposure to vanadium, a commodity with a robust and
growing demand profile amid a constrained and concentrated supply
environment resulting in a sustained structural deficit with no
significant new supply anticipated in the near future;
-- Bushveld will own a majority shareholding in a high grade,
low-cost open-cast and simple mining proposition with access to
brownfield processing infrastructure that is being acquired for
considerably less than its replacement cost;
-- Vametco enjoys a significant c.3.5 per cent. share of the global vanadium market;
-- The Vanadium Price has enjoyed a strong performance in 2017
with prices increasing by 54% (source: Metal Bulletin) and the
trading price being in excess of US$40/kgV (at the end of November
2017)
-- The production base has the potential to expand within 3
years to over 5,000 mtV per annum, supported by one of the largest
primary vanadium resource base in the world (under the ownership of
Bushveld);
-- Productivity initiatives targeting further production cost efficiencies
-- Vametco has the potential to diversify its product range
beyond its Nitrovan(R) product; and
-- The Acquisition is further aligned with the Company's
aspirations in the global energy storage space by providing
capacity for potential electrolyte manufacturing.
Substantial shareholders in Bushveld on Admission:
As far as the Company is aware, set out below is a list of
substantial shareholders following Admission:
Post-Admission
----------------------------------- --------------------
Shareholder Number %
of shares
----------------------------------- ------------ ------
Hargreaves Lansdown Nominees 126,797,413 14.48
----------------------------------- ------------ ------
Acacia Resources Limited 85,598,644 9.77
----------------------------------- ------------ ------
Halifax Share Dealing 85,416,796 9.75
----------------------------------- ------------ ------
Yellow Dragon Holdings Limited 79,766,364 9.11
----------------------------------- ------------ ------
TD Direct Investing 58,073,632 6.63
----------------------------------- ------------ ------
Jose Roy Hernandez Borromeo 37,969,130 4.33
----------------------------------- ------------ ------
Selftrade - Talos Securities 31,409,484 3.59
----------------------------------- ------------ ------
Mr Nicholas John Mallett 31,000,000 3.54
----------------------------------- ------------ ------
Barclays Wealth and Investment
Management (UK) 30,279,467 3.46
----------------------------------- ------------ ------
Interactive Investor Sharedealing 28,622,422 3.27
----------------------------------- ------------ ------
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief
Executive Officer
SP Angel Corporate Finance
LLP +44 (0) 20 3470 0470
Nominated Adviser & Broker
Ewan Leggat
Blytheweigh
Financial PR
Tim Blythe / Nick Elwes +44 (0) 207 138 3204
Gabriella von Ille +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM listed mineral project development
company with a portfolio of vanadium and coal assets in Southern
Africa and a minority investment in tin.
The Company's flagship vanadium platform includes a 59.1%
controlling interest in Bushveld Vametco Alloys (Pty) Ltd a primary
vanadium mining and processing company; the Mokopane Vanadium
Project and the Brits Vanadium Project. The coal platform comprises
the wholly-owned Imaloto Coal Project, which is being developed as
one of Madagascar's leading independent power producers. The
Company's tin interests are held through its shareholding in AIM
listed AfriTin Mining Limited.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owned high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage solutions provider.
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.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPGGBAPUPMPPU
(END) Dow Jones Newswires
December 21, 2017 02:00 ET (07:00 GMT)
Bushveld Minerals (LSE:BMN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bushveld Minerals (LSE:BMN)
Historical Stock Chart
From Apr 2023 to Apr 2024