Bushveld Minerals, the integrated primary vanadium producer, with ownership of high grade vanadium assets, has received approval from the Competition Commission of South Africa to acquire Vanchem assets, without conditions.
Fortune Mojapelo, CEO of Bushveld Minerals comments:
“Competition Commission approval marks yet another key milestone in closing this exciting transaction.
"We remain on track to complete the acquisition within our targeted time frame, at which point we will have significantly increased our processing capacity, giving us the ability to unlock even more of our existing large high grade resource base and produce a diverse array of products for the steel market, chemical industry and energy storage sector.
"Furthermore, significant progress is being made in respect of the preparation ahead of the integration of Vanchem post transaction closure.”
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On 1 May 2019, Bushveld announced a conditional agreement to acquire the primary vanadium processing assets of Vanchem Vanadium plant, the ferrovanadium production business of SAJV as a going concern, and a 100% of the outstanding shares of Ivanti Resources, a subsidiary of Duferco Participations Holding.
The transaction remains on track to be completed on 31 October 2019 and we expect the outstanding conditions precedent, being the cession of specific commercial agreements and South African Reserve Bank approval, to be satisfied.
Bushveld is progressing the negotiations with local banks for a debt facility to supplement existing cash resources.