Aim-listed Bushveld Minerals has announced that its subsidiary, Vanadium Redox Flow Batteries Holdings (VRFB-H), received notice from Garnet Commerce that it is exercising an option to acquire shares in their jointly owned Enerox Holdings Limited (EHL) business for $3.2-million.
The deal would result in private Indian company Garnet holding 60% of the issued share capital of energy storage company Enerox, EHL’s subsidiary, and VRFB-H holding the remaining 40%.
The transaction is still subject to approval by Austrian authorities.
Until completion of the option, Garnet will have certain rights to direct the affairs of EHL and Enerox.
EHL and Garnet have agreed that Garnet can appoint a majority of board members to EHL and that any further funding required by either EHL or Enerox can be made by Garnet and VRFB-H on a pro rata basis to their shareholdings.
Moreover, Garnet and VRFB-H will procure that EHL and Enerox will continue to deal with Bushveld Energy, whose assets are in the process of being carved out from Bushveld Minerals.
For six months, Bushveld Energy will retain its right of first refusal to supply electrolyte to Enerox projects, after which the company will instead be provided with the right to bid on any such projects and Enerox will not grant a right of first refusal to any other third party.
Enerox has also agreed to support Bushveld Energy in completing installation of, and providing ongoing contracted support for, the Bushveld minigrid.
The minigrid project involves a 3.5 MW solar photovoltaic and 1 MW vanadium redox flow battery hybrid system for Vametco, one of Bushveld Minerals’ vanadium mining operations.