Integrated primary vanadium producer,announced on Thursday the successful completion of the acquisition of the Vanchem assets and shares in Ivanti Resources.
Bushveld Minerals has acquired, through its wholly owned South African subsidiary, Bushveld Vanchem Proprietary Limited, the Vanchem Plant and South African Japan Vanadium Proprietary Limited.
Alongside this, the firm has also acquired 100% of the issued shares in Ivanti Resources Limited from Duferco Participations Holdings.
Following from the announcement made on 23 October 2019, total consideration of the acquisition was reduced from US$68 million to US$53.5 million. US$30.5 million of this amount was payable in cash and the balance would be satisfied via the issue of Bushveld’s unsecured convertible loan notes.
At present, the company say they have made a US$30 million cash payment with the unsecured convertible loan notes of US$23.0 million issued by Bushveld to Duferco.
The company further explained that after two years, 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.
Chief Executive of Bushveld, Fortune Mojapelo expressed his excitement at the completed acquisition describing it as "transformational" and a crucial step in the firm’s strategy execution.
He commented, “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.”
Bushveld further reported that its subsidiary Bushveld Vanchem has now taken over Vanchem Vanadium Products’ senior production team with the addition of mining expert André Strydom who was appointed as General Manager.
“As we come towards the end of 2019, we have laid the groundwork for a strong 2020, which will see Bushveld Minerals strengthening its competitive position as the leading vertically integrated primary vanadium producer,” Mr Mojapelo further added.
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