Bushveld negotiates lower price for Vanchem business
Aim-listed Bushveld Minerals has renegotiated the consideration payable for the Vanchem business, reducing the purchase price from $68-million to $53.5-million.
Bushveld will pay $30-million of the consideration in cash, with the balance to be funded from unsecured convertible loans.
The company in May announced its intention to acquire the Vanchem plant and 100% of the shares in issue of Ivanti Resources, from Vanchem Vanadium Products (VVP) – which is a subsidiary of Duferco Vanadium Investment Holding.
Additionally, Bushveld will acquire the South African Japan Vanadium business – which is a wholly-owned subsidiary of VVP.
The company stated on Thursday that the improved terms take into account the current market conditions, while affirming the medium- to long-term vanadium market outlook of Bushveld, which is the natural buyer for Vanchem.
The acquisition ensures that Bushveld is in a solid position to achieve its long-term production target of more than 8 400 t/y of vanadium and build a leading downstream vanadium-based energy storage platform.
The transaction is expected to be completed on November 7.
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