Bushveld Vametco has applied for Ministerial approval of its acquisition of Strategic Minerals Corporation and secured funding for the balance of the acquisition. AIM-listed Bushveld Minerals, a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, is in the final stages of acquiring Strategic Minerals Corporation (SMC) from LSE-listed Evraz Group SA.
Bushveld Vametco, in which Bushveld Minerals has a 45% interest, signed an amended and restated share purchase agreement on 22 July 2016, in terms of which it would acquire all the shares held by Evraz in SMC, subject to financing and the fulfilment of several conditions precedents.
Bushveld Minerals said that since the July announcement, an application in terms of section 11 of the Mineral and Petroleum Resources Development Act of 2002 for the ministerial consent of the acquisition was lodged with the Department of Mineral Resources. The application is currently being evaluated.
Bushveld Vameco has also provided the required proof of funding for the balance of US$14.8 million owed to the Evraz Group. Bushveld Vametco and Evraz have since started preparations for the completion of the transaction by the long stop date of 31 March 2017.
The funding secured for the balance of the acquisition comprise debt and mezzanine debt instruments for which Bushveld Vametco has signed term sheets. Bushveld Minerals added that Bushveld Vametco is in advanced stages of negotiating definitive legal agreements.
The company announced in December last year that the Competition Commission of South Africa approved its acquisition of SMC from Evraz.
Evraz holds a 78.8% stake in SMC, which owns the Vametco vanadium mine and plant in South Africa’s North West province near the town of Brits.
Vametco’s mining right lies adjacent to Bushveld’s Brits vanadium project, which is the continuation of the strike of the Vametco mine’s deposit with similar vanadium grades to the mine.