Bushveld raises cash for Vametco costs, other projects

JOHANNESBURG (miningweekly.com) – Diversified mineral development company Bushveld Minerals has raised £580 000 through the issue of 38.67-million shares at 1.5p apiece.

The proceeds will be used for general working capital purposes, continuing costs associated with the Vametco transaction, ongoing work in respect of subsidiary Bushveld Energy's cooperation agreement with the Industrial Development Corporation (IDC) and continuing work on Lemur Resources’ independent power producer (IPP) project in Madagascar.

“I am pleased with the successful placing, which comes in handy at an important time for the company. We have been careful in limiting the number of placings the company undertakes and have, thus, made significant strides with limited dilution for our shareholders.

“The placing will help us maintain our focus on the financing of the acquisition of Strategic Minerals Corporation (SMC), which is set to transform us into a significant low-cost integrated vanadium company,” CEO Fortune Mojapelo said on Thursday.

Bushveld in May signed a share purchase agreement to buy Evraz’s 78.8% stake in SMC, which holds the Vametco vanadium mine and processing plant, in the North West province.

The company and its financing partner Yellow Dragon have established a 45:55-owned special purpose vehicle to acquire the Vametco assets for $16.4-million.  

Subsidiary Bushveld Energy in June signed an agreement with the IDC to commission a feasibility study to assess the viability of manufacturing vanadium-redox flow batteries in South Africa.

Through its 57.21% interest in Lemur Resources, Bushveld Minerals also has an interest in the Imaloto coal project, in Madagascar, where Lemur is working to secure an IPP licence to allow it to supply sufficient power for its own operations as well as that of other mines in south-west Madagascar.