Update on Strategic Minerals Corporation
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17 March 2017 |
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Bushveld Minerals Ltd
("Bushveld" or the "Company")
Update on Conditional Purchase Agreement with Evraz
for Strategic Minerals Corporation
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, is pleased to provide an update in respect of the conditional acquisition by Bushveld Vametco Limited ("Bushveld Vametco") of a 78.8% interest in Strategic Minerals Corporation ("SMC") from Evraz Group SA ("Evraz") (the "Transaction").
The Company advises that it has received confirmation that both Strategic Minerals Corporation and Sojitz Noble Alloy's Corporation have agreed to waive their respective pre-emptive rights, in terms of the SMC Shareholders Agreement, to acquire the SMC shares Bushveld Vametco has agreed to acquire pursuant to the Transaction in respect to all the offer shares.
The waivers of pre-emptive rights by SMC and Sojitz form part of the conditions precedent to be fulfilled prior to completion of the Transaction.
In addition to finalising the financing, as announced on 8 March 2017, the Company is making good progress in fulfilling the remaining conditions precedent which include:
· Termination of all the related party contracts to Bushveld's reasonable satisfaction;
· Transfer of the marketing and off-take agreements;
· Key management's agreement in writing to remain employed with the Vametco Group following Transaction completion; and
· Securing the Department of Mineral Resources' Ministerial consent to the Transaction in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002.
Further updates will be provided as appropriate.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, said of the waivers, "We are pleased to receive confirmation of the waivers of pre-emptive rights by SMC and Sojitz, as it is one of the most important hurdles to cross towards completion of the SMC transaction.
"We look forward to securing the Department of Mineral Resources' Ministerial consent to the Transaction in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002."
Enquiries: info@bushveldminerals.com
Bushveld Minerals Limited
Fortune Mojapelo +27 (0) 11 268 6555
Strand Hanson Limited (Nominated Adviser)
Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494
Beaufort Securities (Joint broker)
Jon Bellis +44 (0) 20 7382 8300
SP Angel Corporate Finance (Joint broker)
Ewan Leggat +44 (0) 20 3470 0470
Blytheweigh (Public Relations)
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.
The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
Bushveld Minerals' approach to project development recognises that whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. 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
This information is provided by RNS
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