JOHANNESBURG (miningweekly.com) – The first tranche payment for Aim-listed Bushveld Minerals’ $17.2-million acquisition of Evraz Group’s Vametco vanadium mine operation, in the North West, has been delayed until July 22 to allow the parties to wrap up amendments to the purchase agreement.
Bushveld and financing partner Yellow Dragon, which, together, established the 45:55 special purpose vehicle Bushveld Vametco to acquire the assets, are also finalising working capital and net debt adjustments.
The first tranche of $4.7-million will secure the first 23% effective interest in Strategic Minerals Corporation (SMC), a holding company for the group of companies that own Vametco.
Bushveld Vametco’s interest in SMC will increase to 78.8% on completion of the $12.5-million second tranche payment.
Payment of the first tranche had initially been postponed from June 17 to July 15, and now until Friday to conclude discussions around purchase agreement amendments and agree on alternative completion arrangements.
“Bushveld and Yellow Dragon remain focused on acquiring the entire 78.8% interest in SMC. The amendment discussions are under way and extension to July 22 allow all efforts to realise this objective,” said Bushveld CEO Fortune Mojapelo.