Bushveld Minerals announces $21.3m Vanchem acquisition deal with Southern Point Resources
Bushveld Minerals Limited (AIM: BMN), a leading integrated primary vanadium producer, has finalized a definitive agreement with Southern Point Resources – Fund 1 SA L.P. (represented by SPR GP1 Proprietary Limited, “SPRF”) for the acquisition of 50% of the issued shares of Bushveld Vanchem (Pty) Ltd (“BV”), which owns the Vanchem vanadium processing plant. The deal is valued at up to US$21.3 million.
Key Details of the Transaction:
Financial Terms: The acquisition price for Vanchem is set at up to US$21.3 million. This includes two payment tranches, with the first tranche being approximately US$13.2 million and the second tranche contingent on conditions related to the Mokopane Acquisition.
Mokopane Acquisition: Concurrently, the purchase of Bushveld’s 64% equity interest in a subsidiary owning the Mokopane Vanadium project is proceeding for US$3.7 million.
Strategic Investment Package: This acquisition is part of a larger US$69.5-US$77.5 million funding package previously announced in September, which includes various investments and arrangements between Bushveld and SPR.
Statements from Company Executives:
Craig Coltman, CEO of Bushveld Minerals: Expressed satisfaction with the definitive agreement and anticipation for further advancements in the overall funding package, emphasizing the value addition to Vanchem.
Transaction Background and Conditional Aspects: The acquisition is subject to several conditions, including the signing of the SPR Investment Agreement, approval from the South African Competition Commission, and exchange control approval by SPR, all required before April 30, 2024.
Bushveld Minerals Limited’s strategic agreement with Southern Point Resources marks a significant step in the company’s expansion in the vanadium processing sector. The collaboration aims to enhance the capabilities of the Vanchem plant and aligns with Bushveld’s overall growth strategy in the mining industry.