JOHANNESBURG (miningweekly.com) – Owing to the conclusion of fundamental partnerships in the six months to August 30, diversified miner Bushveld Minerals is progressing towards its goal of becoming a global integrated vanadium producer.
CEO Fortune Mojapelo said on Tuesday said that one such major milestone in the half-year period was the execution of the share purchase agreement in May with Evraz Group for the acquisition of Strategic Minerals Corporation, the holding company for Vametco primary vanadium mine and processing plant.
“Since then, we have been focused on fulfilling the conditions precedent for the transaction, which include securing all requisite regulatory approvals and funding," said Mojapelo, adding that the company had, to date, made significant progress in terms of raising capital for the transaction.
Bushveld expects the transaction to be structured as a combination of debt and equity, with the objective of reducing the dilution impact on its shareholders.
Mojapelo further highlighted that the Aim-listed company had made progress in developing its energy platform, Bushveld Energy, through the memorandum of understanding signed with UniEnergy Technologies earlier this year.
“This provides us with access to advanced technologies and a deep knowledge base in the manufacture of vanadium-redox flow batteries (VFRBs). Further, our finalisation of the tenders for studies into the VFRB market, in partnership with the Industrial Development Corporation, will enable us to effectively enter the market by targeting the most lucrative opportunities,” stated Mojapelo.
He added that, as with all exploration groups at this stage of the resource development cycle, Bushveld’s working capital funding was derived principally through equity financing.
“Therefore, I am pleased to confirm that in August and October our shareholders continued to support us through two successful capital raises that grossed £1.3-million,” he concluded.