In its pusuit of acquiring full ownership of the Vametco vanadium mine and production facility (Vametco), Aim-listed integrated primary vanadium producer Bushveld Minerals has met all the necessary conditions and received final approval from the South African Reserve Bank (SARB), thereby allowing the company to increase its ownership to 100% of Vametco.
Accordingly, Bushveld has acquired the 26% minority interest in Bushveld Vametco Holdings (BVH) from the black economic empowerment (BEE) consortium in return for, among others, the issue of 232.84-million new ordinary shares of 1 pence apiece in Bushveld.
Going forward, Bushveld will own 100% of the Vametco mine and vanadium plant, thereby acquiring full operational, management and financial control of Vametco.
This gives the Bushveld group complete control over Vametco's cash flows previously restricted by the minority interest, and is immediately value accretive to Bushveld shareholders with an expected enhancement in earnings a share going forward.
Bushveld CEO Craig Coltman says the approval of this important transaction by SARB strengthens and confirms the direction of the company strategy. “This allows us to consolidate the ownership of a valuable vanadium-producing asset, solely under one entity - Bushveld Minerals."
Edited by: Creamer Media Reporter
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