BUSHVELD Minerals said it had received Competition Commission approval for the $68m purchase of Vanchem Vanadium Products, a transaction that would help take the firm’s vanadium output to 10,000 tons a year.
The UK-listed firm added that the deal was on track for completion by October 31. Outstanding conditions were the cession of specific commercial agreements as well as South African Reserve Bank approval.
Bushveld Minerals also said it was in talks with local banks for a debt facility that would be used to support the cash component of the acquisition.
Fortune Mojapelo, CEO of Bushveld Minerals, said the company was, in the meantime, increasing its processing capacity which would give it “… the ability to unlock even more of our existing large high grade resource base and produce a diverse array of products for the steel market, chemical industry and energy storage sector”.
The UK-listed firm said on May 1 it would buy Vanchem Vanadium Products requiring capital of $45m. This would be for the refurbishment of facilities including three roasting kilns with capacity to produce vanadium products. Bushveld Minerals would also spend $20m developing its Mokopane vanadium deposit which will supply ore to Vanchem.
As with its existing asset Vametco, Vanchem is in South Africa’s North West province amongst the many platinum group metal operations, but Mokopane is situated northwards in Limpopo province.
The total cost of the investment would be $133m including the purchase price, opening of Mokopane and refurbishment of Vanchem which will be undertaken over five years. For the purchase price, an initial $6.8m will be paid upfront with the balance paid by October.