Bushveld Minerals has announced that all outstanding conditions relating to the Vanchem Acquisition have been fulfilled.
Bushveld Minerals has therefore acquired, through its wholly owned South African subsidiary, Bushveld Vanchem:
- the Vanchem Plant from Vanchem Vanadium;
- South African Japan Vanadium; and
- Through Bushveld Minerals Limited, 100% of the issued shares in Ivanti Resources
As previously notified on 23 October 2019, the total consideration for the acquisition was reduced from US$68 million to US$53.5 million, of which US$30.5 million was payable in cash and the balance (US$23.0 million) would be satisfied through the issue of Bushveld Minerals unsecured convertible loan notes.
The company announces that:
- The US$30 million cash payment has been made by Bushveld Minerals and VVP has confirmed receipt thereof;
- The US$23.0 million Bushveld Minerals unsecured convertible loan notes have been issued by the company to Duferco, which has confirmed receipt thereof; and
- A further cash payment of US$0.5 million, plus an amount equal to the working capital adjustment of the Vanchem Businesses, will be made after two years.
Accordingly, all conditions to closure of the transaction have been fulfilled and the Company has taken operational control of the Vanchem Business and Ivanti.
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BV has taken over VVP’s existing senior production team, which will provide operational stability while Vanchem is integrated into Bushveld Minerals.
Fortune Mojapelo, CEO of Bushveld Minerals, comments:
“We are delighted to announce the successful completion of the acquisition of the Vanchem assets and Ivanti shares as this is a transformational acquisition and represents a significant step in the execution of the company’s strategic plan.
The acquisition places the company in an advantageous position to offer an attractive and diverse suite of vanadium products capable of servicing the steel and chemical sectors and the burgeoning energy storage market.
We are now able to fine tune the plan for these assets and then provide, in due course, a comprehensive strategy to our stakeholders.
As we come towards the end of 2019, we have laid the groundwork for a strong 2020, which will see us strengthening its competitive position as the leading vertically integrated primary vanadium producer.”