Bushveld Minerals, the AIM-listed diversified mineral development company, announced in connection with its proposed acquisition of Vametco Holding that it has agreed terms with Jaxson 640 to support Jaxson 640’s acquisition of a controlling interest in the BEE shareholdings in Vametco Holding.
The Jaxson 640 transaction will take place alongside Bushveld Vametco’s proposed acquisition of a 78.8% interest in Strategic Minerals Corporation (SMC) from the Evraz Group which is currently underway.
Jaxson 640, a qualifying BEE company in accordance with the Broad Based Economic Empowerment Act of South Africa, has agreed conditionally to acquire an effective 21.2% in Vametco from a consortium led by Avacap Consortium for a consideration totalling an estimated R47 million.
Furthermore, Jaxson 640 has signed a deed of adherence undertaking to be bound by all the BEE agreements underpinning Vametco Holdings’ new order mining right.
Fortune Mojapelo, CEO of Bushveld Minerals, commented: “We are pleased to welcome Jaxson 640 as our BEE partner of choice in Vametco Holdings. Jaxson is led by Bill Chipane, a succesful investment professional with more than ten years in the mining industry.
“Jaxson 640 will also include a shareholding for a trust focused on empowering disadvantaged women and youth in the communities that Vametco operates in, with particular emphasis on education, entrepreneurship and enterprise development.
“The involvement of the communities through a community trust presents an opportunity to pro-actively ensure that the economic interest in Vametco Holdings dedicated to local communities can be applied in a proactive and strategic manner that delivers measurable and sustainable economic benefits for the communities concerned.
“We look forward to our collaboration with our future BEE partner as well as the professional and local community representatives.”