Joint Venture agreement with redT
9 March 2020
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Joint Venture agreement with redT to form a Vanadium Financing Partnership to supply vanadium electrolyte
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer, which owns high-grade vanadium assets in South Africa ("Bushveld"), is pleased to announce that it has signed a joint venture agreement with redT energy plc ("redT") to form a Vanadium Financing Partnership (the "Partnership") which will supply vanadium electrolyte to be used in third party-owned Vanadium Redox Flow Batteries ("VRFBs") projects developed by redT.
The Financing Partnership is in line with Bushveld Minerals' strategy of partnering with VRFB companies for the supply of vanadium material, vanadium electrolyte and vanadium electrolyte rental, as announced on 1 November 2019.
Highlights
· A key part of Bushveld's strategy is to encourage the growth of the market for VRFBs, an attractive commercial opportunity in itself, which will also help strengthen vanadium demand profile.
· The simple architecture of a VRFB, combined with the re-usability and consequent positive residual value of the vanadium electrolyte after a long lifecycle create an opportunity for vanadium rental strategies that will reduce the upfront cost of purchasing and installing VRFBs to end users, by separating the cost of the mechanical and chemical elements of the VRFBs.
· The Partnership will take the form of a special-purpose vehicle structured to hold physical vanadium. It will supply vanadium electrolyte, an important element of VRFBs, to a series of VRFB projects in Europe (the "Projects") to be deployed over an initial period of 2 years, which will help demonstrate proof of concept for this financial model at a larger scale. It builds on the smaller contract executed in 2019 in the USA with Avalon Battery Corporation.
· The Partnership's initial target will be to deliver approximately 15 MWh of VRFBs to market, this will require approximately 80 mtV to be supplied by Bushveld.
· The vanadium electrolyte will be supplied to the Projects via long-term lease or rental arrangements, with financing from external funders that the Partnership are currently in discussions with.
· The vanadium electrolyte will be processed from feedstock from Bushveld's primary assets in South Africa, by an industrial partner in the United Kingdom.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
"Driving VRFB adoption will allow Bushveld to command meaningful market share in the growing stationary energy storage market whilst growing long term, structural demand for vanadium.
"Costs to users will be key. On a lifecycle basis VRFBs are competitive but reducing upfront capital costs will speed market wide take-up versus rival technologies.
"The rental model Bushveld is pioneering will reduce purchase and installation costs, taking advantage of the re-usability and consequent positive residual value of the vanadium electrolyte.
"In addition, the electrolyte rental model, along with structurally higher demand, will reduce volatility in vanadium prices.
"This joint venture will deepen and strengthen our relationship with redT and allow Bushveld to develop further expertise in financial modelling and legal structuring of the vanadium electrolyte rental model."
ENDS
Inquiries: info@bushveldminerals.com
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Bushveld Minerals |
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+27 (0) 11 268 6555 |
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Fortune Mojapelo, Chief Executive Officer |
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Chika Edeh, Head of Investor Relations |
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SP Angel Corporate Finance LLP |
Nominated Adviser & Broker |
+44 (0) 20 3470 0470 |
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Richard Morrison / Stephen Wong |
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Abigail Wayne / Richard Parlons |
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Peel Hunt LLP |
Joint Broker |
+44 (0) 20 7418 8900 |
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Ross Allister / Alexander Allen |
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BMO Capital Markets Limited |
Joint Broker |
+44 (0) 20 7236 1010 |
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Tom Rider/ Michael Rechsteiner / Neil Elliot |
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Tavistock |
Financial PR |
+44 (0) 20 7920 3150 |
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Charles Vivian / Gareth Tredway / Edward Lee |
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Brunswick |
Financial PR (South Africa) |
+27 (0) 11 502 7300 |
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Miyelani Shikwambana |
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ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, integrated, primary vanadium producer, with ownership of high-grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 100 per cent of Bushveld Vanchem, a primary vanadium processing facility with a beneficiation plant; the Mokopane Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low-cost, integrated primary vanadium producer through owning high grade assets. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries. Bushveld Energy, the Company's energy storage solutions provider, plays a leading role in the development and promotion of the role of vanadium in this market.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they may be insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website at www.bushveldminerals.com .
About Bushveld Energy Limited
Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that electricity in Africa intersects paramount potential for social transformation with an immense commercial opportunity.
Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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