Bushveld Minerals CEO Craig Coltman
Integrated primary vanadium producer and energy storage solutions provider Bushveld Minerals has entered into a conditional agreement to buy the 26% interest in the Vametco mine and production facility, in South Africa’s North West province, that is held by a black economic empowerment (BEE) consortium.
In exchange, the consortium will receive 232.84-million shares in Bushveld, representing 13% of Bushveld’s enlarged share capital.
"This is an important transaction as it consolidates the ownership of this valuable vanadium producing asset under a single entity – Bushveld Minerals.
“As South Africa navigates its way beyond the original BEE ownership requirements at asset level as set in law, we see it fit to now transfer this interest to a stake at the top level of the company, providing see-through value in a listed stock and access to Bushveld's future growth plans across the group.
“For Bushveld, it allows us to consolidate the structure and take full control of the asset,” says Bushveld CEO Craig Coltman.
Aim-listed Bushveld states that the transaction will give it complete control over Vametco’s cash flows and that it is expected to enhance earnings a share going forward.
The transaction is subject to approval by the South African Reserve Bank.