JOHANNESBURG (miningweekly.com) – Aim-listed diversified miner Bushveld Minerals has signed legal agreements for the $600 000 acquisition of the Brits vanadium project from Sable Metals and Minerals.
"The signing of the term sheet with Sable further reinforces our solid vanadium resource platform on the western limb of the Bushveld Complex. The Brits project is in a geographic location that is well serviced with logistics infrastructure, in close proximity to several existing vanadium processing facilities.
“This addresses two important aspects of our vanadium platform strategy, consolidating quality vanadium resources and, more importantly, developing brownfield vanadium processing infrastructure.
“With high vanadium grades reflected by previously unpublished historical geological data, as well as more recent exploration data undertaken by Sable, we are confident this acquisition will play a significant role in our development of the Bushveld Vanadium story,” Bushveld CEO Fortune Mojapelo said in a statement.
The Brits project comprised new-order prospecting rights on the properties Portion 3 of Uitvalgrond 431 JQ and the remaining extent of Doornpoort 295 JR, and a contested mining right application on the farms Syferfontein 430 JQ and Portion 2 of Uitvalgrond 431 JQ.
The mineral rights allowed for the mining of vanadium, iron-ore and rutile.
Through its Lemur subsidiary, Bushveld and Sable had entered into a loan agreement in March, whereby Lemur agreed to lend Sable R2-million for working capital requirements while it conducted due diligence with a view to potentially acquiring the Brits project.
The terms of the agreement were such that, in the event of a successful acquisition, the loan amount would be offset against the purchase price. In the event that Lemur chose not to proceed with the acquisition, the loan amount, together with interest, would be repayable.
In July, Lemur agreed to lend a further R1.5-million to Sable for additional working capital, under the same terms as the original loan.
The outstanding purchase price of R3-million would be paid in two further instalments, to be completed upon Sable’s shareholders approving the transaction.
The final amount payable would be calculated based on the prevailing exchange rate at completion.