Fortune Mojapelo
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals has completed its acquisition of 55% of Bushveld Vametco by issuing 54.76-million new ordinary share to Yellow Dragon Holdings.
“We are delighted to have completed this acquisition before the end of the year. Vametco has, to date, illustrated its strong cash generation capability and, with the expansion initiatives underway, the drive towards a lower cost base which, in a rising vanadium price environment, ensures the transaction is value accretive to our shareholders. We go into 2018 in a strong position and look forward to the future with confidence,” CEO Fortune Mojapelo said.
The mineral project development company earlier this month made an $11.1-million offer to acquire all the shares it did not already own in BVL.
Bushveld, through BVL, now owns a 78.8% economic interest in Strategic Minerals Corporation, which, in turn, holds 75% interest in Vametco Holdings, which has a 100% interest in the Vametco vanadium mine, a high-quality, low-cost mine and plant producing a trademark-protected vanadium product.
The acquisition was settled through a cash payment of $4.5-million and the issue of the shares in Bushveld at 9.06p apiece, representing 6.43%.
In addition, two deferred payments of $600 000 each would still be made, payable following publication of the accounts for Vametco Holdings in December 2018 and December 2019.
A further payment will be made on publication of the Vametco Holdings accounts for the year ended December 2020, to be calculated based on the earnings before interest, taxes, depreciation and amortisation.
Yellow Dragon now holds 9.24% in Bushveld.