Bushveld Minerals, a mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and a minority investment in tin, has announced the completion of the acquisition of 55% of Bushveld Vametco, (BVL) and the issue of of 54 766 364 new ordinary shares in the company to Yellow Dragon Holdings.
“We are delighted to have completed this acquisition before the end of the year,” states Bushveld Minerals CEO, Fortune Mojapelo.
“Vametco has, to date, illustrated its strong cash generation capability and, with the expansion initiatives underway, the drive towards a lower cost base which, in a rising vanadium price environment, ensures the transaction is value accretive to our shareholders.
“We go into 2018 in a strong position and look forward to the future with confidence.”
Highlights of the acquisition:
- Bushveld Minerals has acquired all of the ordinary shares in BVL not currently owned by the Group from Yellow Dragon for an initial purchase price of US$11.1 million to be satisfied on admission
- The initial purchase price of US$11.1 million consists of a cash payment of US$4.5 million and the issue of the consideration shares, credited as fully paid, at 9.06 pence per share. The consideration shares will represent 6.25% of the enlarged issued share capital of Bushveld Minerals and will be issued credited fully paid
- In addition, there will be two deferred payments of US$0.6 million each, payable following publication of the accounts for Vametco Holdings for respectively the years ending 31 December 2018 and 31 December 2019, and a further payment to be made on publication of the Vametco Holdings accounts for the year ended 31 December 2020 to be calculated by reference to the EBITDA of Vametco Holdings for the period covered by its 2020 accounts
- Following completion of the acquisition, Yellow Dragon will hold 79 766 364 shares representing 9.11% of the enlarged issued share capital
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