Bushveld Minerals Limited (LON:BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, has today announced that on 28 August 2019, it received approval from the Competition Commission of South Africa to acquire the Vanchem assets, without conditions.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
“Competition Commission approval marks yet another key milestone in closing this exciting transaction. We remain on track to complete the acquisition within our targeted timeframe, at which point we will have significantly increased our processing capacity, giving us the ability to unlock even more of our existing large high grade resource base and produce a diverse array of products for the steel market, chemical industry and energy storage sector. Furthermore, significant progress is being made in respect of the preparation ahead of the integration of Vanchem post transaction closure.”
On 1 May 2019, Bushveld announced a conditional agreement to acquire the primary vanadium processing assets of Vanchem Vanadium plant, the ferrovanadium production business of SAJV as a going concern, and a 100 per cent of the outstanding shares of Ivanti Resources (Pty) Limited, a subsidiary of Duferco Participations Holding S.A, (collectively “Vanchem”).
The transaction remains on track to be completed on 31 October 2019 and we expect the outstanding conditions precedent, being the cession of specific commercial agreements and South African Reserve Bank approval, to be satisfied.
The Company is progressing the negotiations with local banks for a debt facility to supplement existing cash resources. Further updates and progress on the satisfaction of the remaining conditions precedent and the approval of the debt facility will be provided as appropriate.
