Mustang Energy Update: Conversion Notice
Market Abuse Regulation ("MAR") Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
09 August 2023
Bushveld Minerals Limited
("Bushveld Minerals", "Bushveld" or the "Company")
Mustang Energy Update: Conversion Notice
Bushveld Minerals Limited (AIM: BMN), the integrated primary vanadium producer and energy storage solutions provider, announces that pursuant to the Investment Agreement between Mustang Energy plc ("Mustang") and the Company dated 26 April 2021 (as amended), if the Mustang's shares had not been readmitted to trading on the London Stock Exchange's Main Market for listed securities ("Readmission") by 31 July 2023, the holders of the Mustang's convertible loan notes ("CLN") would be able to effect the backstop arrangements previously agreed between the Company and Mustang.
The backstop arrangements would result in the issuance to each CLN holder of such number of new ordinary shares in Bushveld at a price equal to the 20-day volume weighted average price of a new ordinary share of 1 pence each in the Company prior to the date of issue (the "New Shares") as is equivalent to the principal amount together with all accrued and unpaid interest thereon.
Bushveld advises that Mustang has been informed by each of the CLN holders that they have elected to redeem their CLNs using the above process. The total value of CLNs held by the note holders is £7,150,357 of the 2021 Convertible Loan Notes (as defined in the announcement of 10 October 2022) and 2023 CLNs (as defined in the announcement of 12 April 2023), converting into a total of 270,393,578 new ordinary shares of 1 pence each in Bushveld, equating to an issue price of 2.644 pence per New Share. The New Shares represent 17.4% of the enlarged share capital of the Company. Following this exercise, the holders of the 2021 Convertible Loan Notes and 2023 CLNs will no longer hold any convertible loan notes in Mustang.
On completion of the redemption process described above, Mustang will transfer its 22.1% interest in VRFB-H and novate its rights under the US$2.0 million loan made to Enerox GmbH to Bushveld. Bushveld Minerals Limited and Bushveld Energy Limited will hold 22.1% and 50.5% in VRFB-H respectively. It is intended that payment of the backstop fee will be deferred until Readmission takes place and will be settled in Mustang shares.
Application will be made for the New Shares to trading on AIM ("Admission") and it is expected that the Admission will take effect on or around 15 August 2023.
Following Admission, there will be a total of 1,558,211,859 Bushveld ordinary shares in issue, 670,000 of which are held in treasury. Shareholders should use the figure of 1,557,541,859 as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA's Disclosure and Transparency Rules.
ENDS
Enquiries: info@bushveldminerals.com
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Bushveld Minerals Limited |
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+27 (0) 11 268 6555 |
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Craig Coltman, 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 / Charlie Bouverat |
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Grant Baker / Richard Parlons |
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RBC Capital Markets |
Joint Broker |
+44 (0) 20 7653 4000 |
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Sahil Suleman / Jamil Miah |
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Tavistock |
Financial PR |
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Gareth Tredway / Tara Vivian-Neal/ James Whitaker |
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+44 (0) 207 920 3150 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary vanadium producer. It is one of only three operating primary vanadium producers, owning 2 of the world's 4 operating primary vanadium processing facilities. In 2022, the Company produced more than 3,800 mtV, representing approximately three per cent of the global vanadium market. With a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors, the Company participates in the entire vanadium value chain through its two main pillars: Bushveld Vanadium, which mines and processes vanadium ore; and Bushveld Energy, an energy storage solutions provider.
Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through the advancement of vanadium-based energy storage systems, specifically Vanadium Redox Flow Batteries ("VRFBs").
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com
About Vametco
Vametco is located near Brits on the Western Limb of the Bushveld Complex. The integrated operation comprises a vanadium ore mine and a processing plant that produces mostly Nitro Vanadium. The mine lies adjacent to the Brits Vanadium Project, which will in future serve as an alternative source of near surface run of mine ("ROM") ore feed to the Vametco plant.
The Vametco mining operation uses open pit bench mining methods to mine a well-defined orebody. The deposit is continuous with limited faulting and dips in a northerly direction at approximately 19 degrees.
ROM ore is fed into a primary, secondary and tertiary crushing circuit, followed by milling and magnetic separation to produce magnetite concentrates. The magnetite concentrate is fed into the extraction process which consists of a rotary kiln for roasting followed by leaching and precipitation. Thereafter the precipitated vanadium as ammonium metavanadate is converted to modified vanadium oxide ("MVO") in a rotary calciner. MVO is fed into the mix plant and finally into the shaft furnaces to produce Nitro Vanadium.
About Vanchem
Vanchem is situated at Ferrobank Industrial Park in Emalahleni Local Municipality, Mpumalanga Province in the Republic of South Africa. Vanchem is a primary vanadium producing facility with a beneficiation plant capable of producing various vanadium oxides, ferrovanadium and vanadium chemicals. Vanchem uses the salt roast beneficiation process, similar to the one used at Vametco. The plant comprises: a core salt-roast processing plant, including 3 roasting kilns, an electric smelting ferrovanadium converter, an alumino-thermic smelting facility, also located at Highveld, a vanadium chemical plant; and a rail siding linking the plant with Bushveld deposits and additional potential supply sources through the national rail network.
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