Special purpose acquisition company Mustang Energy has invested $7.5-million into Vanadium Redox Flow Battery Holdings (VRFB-H) to acquire a 22.1% interest in VRFB-H and an indirect 11.05% interest in vanadium redox flow battery (VRFB) manufacturer Enerox.
Bushveld Minerals’ 84%-owned Bushveld Energy subsidiary holds an indirect 25.25% interest in Enerox through VRFB-H’s 50% interest in Enerox’s parent company Enerox Holdings.
Bushveld Minerals reported earlier this month that a consortium of investors in Enerox Holdings would invest $30-million to scale up Enerox’s production capacity to 30 MW by 2022. Capacity is expected to increase further to at least 150 MW by 2025.
Bushveld Minerals’ share of the investment in Enerox was $7.5-million.
The investment of VRFB-H into Enerox is in line with Bushveld Minerals' strategy to mobilise capital to scale up growth and capacity of VRFB manufacturers, either through self-funding mechanisms or through funding sharing arrangements such as this agreement with Mustang.
Mustang funded its investment by way of the issue of $8-million unsecured convertible loan notes, at a 10% coupon, to certain investors.