Bushveld Minerals Limited completed sale of 1% equity interest in Bushveld Vametco Holdings to Black Economic Empowerment

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Bushveld Minerals Limited (LON: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, today announced that it has completed the sale of a 1% equity interest in Bushveld Vametco Holdings (Proprietary) Limited (“Vametco”) to its two Black Economic Empowerment shareholders Business Ventures Investments No. 1833 (Proprietary) Limited and Business Ventures Investments No. 973 (Proprietary) Limited (“BEE Shareholders”) for a total cash consideration of R1,780,000.

The commitment to conclude the transaction at the agreed consideration was made by the previous Strategic Minerals Corporation (“SMC”) owners, prior to Bushveld’s acquisition, with a view to meeting the Black Economic Empowerment equity requirements as set out in the current Mining Charter. Accordingly, the sale increases Vametco’s Black Economic Empowerment shareholding from the current 25.0% to 26.0%, ensuring Vametco is fully compliant with the minimum Black Economic Empowerment ownership requirements of the current Mining Charter. Bushveld’s shareholding in Vametco, through its wholly owned subsidiary SMC, accordingly reduces to 74%.

Terms of the sale agreement are as follows:

· Total 1.0% interest acquired to increase total BEE Shareholders interest to 26.0% for a total cash consideration of R1,780,000;

· The R1,780,000 consideration is paid in the form of vendor financing provided to BEE Shareholders by Bushveld to be repaid to from future dividends payable to BEE Shareholders;

· Strategic Minerals Corporation and Bushveld’s ownership reduced from 75.0% to 74.0%.

Commenting on the transaction, Bushveld Minerals, Fortune Mojapelo said“Vametco’s mining right underpins the value of the operation to Bushveld and this transaction contributes to the security thereof in meeting our licence to operate. While the transaction consideration, which was agreed between the parties prior to Bushveld’s acquisition of SMC, reflects a material discount to value, the significance of the Company’s compliance with South African mineral laws and the Mining Charter cannot be overstated.”