LONDON: Bushveld Minerals Limited (AIM: BMN), a leading producer of vanadium, a metal used in batteries and steel, has announced that it has signed a definitive agreement to sell 50% of its stake in Bushveld Vanchem (Pty) Ltd (BV) to Southern Point Resources – Fund 1 SA L.P. (SPRF) for up to US$21.3 million.

BV owns the Vanchem vanadium processing plant (“Vanchem”), which is located in South Africa and has a production capacity of 80 metric tonnes of vanadium per month.

The sale of BV is part of a larger funding package that Bushveld agreed with SPR, a private equity firm, in September 2023. The package includes a working capital facility, an equity investment, a trade finance facility, and a marketing and sales arrangement. SPR will also buy Bushveld’s 64% interest in the Mokopane Vanadium project, a vanadium exploration and development project, for US$3.7 million.

Craig Coltman, CEO of Bushveld Minerals, said that the deal with SPR will help the company unlock value in its assets and improve its performance and profitability. He said that he is looking forward to working with SPR to grow the vanadium business and that he expects to announce more progress on the funding package soon.

The transaction is subject to certain conditions, including the approval of the South African Competition Commission and the exchange control approval by SPR. The transaction is expected to close by 30 April 2024.

Bushveld Minerals acquires full ownership of Vametco Vanadium Mine