LONDON, UK: Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage solutions provider, has entered into a conditional agreement which will result in the Company increasing its ownership to 100% of the Vametco vanadium mine and production facility.
Bushveld has entered into a definitive agreement to acquire the 26% minority interest in Bushveld Vametco Holdings Proprietary Limited (“BVH”) owned by a Black Economic Empowerment (“BEE”) consortium in return for, inter-alia, the issue of 232,836,255 shares in the Company (the “Consideration Shares”), representing 13% of the enlarged issued share capital (assuming no other issuance of shares).
– will result in Bushveld owning 100% of the Vametco mine and vanadium plant, and acquiring full operational, management and financial control of Vametco.
– gives the Group complete control over Vametco’s cash flows, which have previously been restricted due to minority interest.
– is immediately value accretive to Bushveld Shareholders and is expected to enhance earnings per share going forward.
– 70% of the Consideration Shares will be subject to a 6 month lock-in period.