Update on investment in Enerox GmbH ("Enerox")
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
19 December 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Update on investment in Enerox GmbH ("Enerox")
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer, with ownership of high-grade vanadium assets in South Africa, is pleased to provide an update on the investment in Enerox GmbH ("Enerox"), previously announced on 12 November 2019, by a consortium of investors (the "Consortium"). The investment in Enerox is in line with Bushveld Minerals' strategy of partnering with Vanadium Redox Flow Battery ("VRFB") companies and part of the VRFB Investment Platform ("VIP"), as announced on 1 November 2019.
The Consortium, which currently includes Bushveld Minerals, has signed an initial sale and purchase agreement ("ISPA"). In terms of the ISPA, the members of the Consortium have acquired, in equal proportions, 24.9 per cent of the issued share capital of Enerox for €150,000 from CellCube Energy Storage Systems Inc (the "Seller"). In addition to this amount, to date, the Consortium has invested €600,000 in Enerox to fund ongoing working capital. The Consortium has committed to make three further staged payments of €300,000 in December, January and early February which will bring the total initial investment in Enerox to €1.65 million. In due course Bushveld Minerals intends that Bushveld Energy Limited, an 84 per cent owned subsidiary of Bushveld Minerals, will take its place in the Consortium.
As previously announced, the Consortium has been granted exclusivity until the end of February 2020 to complete due diligence and now expects to negotiate a subsequent main sale and purchase agreement to acquire the remaining issued share capital of Enerox for a further consideration of €10.85 million on a debt free basis within the same timeframe. Whilst it remains a minority shareholder in Enerox, in addition to the call and put arrangements previously announced, Bushveld Minerals has been granted customary minority protections under the ISPA.
Bushveld Minerals anticipates contributing not more than 50 per cent of the funds to be invested by the Consortium and is considering additional investors to participate as part of the Consortium.
The Enerox investment is part of Bushveld Minerals' strategy of partnering with VRFB Original Equipment Manufacturers ("OEMs") that incudes supply of vanadium and electrolyte, deployments and investment. The investment strategy is implemented through the VIP, which seeks to make significant minority investments into high potential VRFB OEMs. The VIP allows for the flow of investment into VRFB OEMs and provides investors with access to the rapidly growing energy storage market.
Further announcements will be made in due course.
Fortune Mojapelo, CEO of Bushveld Minerals, commented:
"This is another positive step towards the Consortium's acquisition of Enerox, and we are pleased with the progress.
"Enerox is one of the most established VRFB OEMs with over 130 global installations to date. Bushveld's participation in this investment enhances our VIP, while providing additional strength to the Company's vertical integration strategy, supporting VRFB adoption and helping to grow the overall vanadium market."
ENDS
Enquiries: 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 / James Bavister |
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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 / |
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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
The Company is a low-cost, vertically integrated primary vanadium producer with a diversified vanadium product portfolio, currently supplying approximately 3,000 mtVp.a of the global vanadium market with plans to grow its production to more than 8,400 mtVp.a within the next 5 years. Through Bushveld Energy, the Company's energy storage solutions provider, Bushveld Minerals plays a pivotal role in the development and promotion of Vanadium Redox Flow Battery ("VRFB") technology.
Bushveld Minerals' vertical integration strategy allows the Company to have a significant role across the upstream and downstream vanadium value chain, and provides a natural hedge against vanadium price volatility, being in a solid position throughout the vanadium price cycle.
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.
While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.
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 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.
Launched in 2016, 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 by 2020, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldenergy.com.
About Enerox
Enerox is the battery subsidiary of CellCube, specializing in the planning, development and turnkey construction of Utility Scale projects worldwide. It is one of the world's first and largest developers, manufacturers and distributors of vanadium redox flow batteries, headquartered in Wiener Neudorf, Austria.
With more than 136 installations across five continents, Enerox has substantial industry and operational experience. The technology has proven to deliver long lasting energy storage (now rated for 30 years) and infrastructure for deployment in a wide range of applications including: grid storage and micro grids; storage collocated with renewables such as solar and wind; time shift; diesel power replacement; commercial and industrial solutions such as farming; electrical vehicle charging stations; industrial plants; office buildings and emergency power sources.
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