Bushveld Minerals gets Competition Commission approval to acquire Vanchem assets
JOHANNESBURG - Integrated primary vanadium producer Bushveld Minerals says it has received approval from the Competition Commission of South Africa to acquire the Vanchem assets without conditions.
Bushveld on May 1 announced a conditional agreement to acquire the primary vanadium processing assets of Vanchem Vanadium plant, the ferrovanadium production business of SAJV, and 100 percent of the outstanding shares of Ivanti Resources, a subsidiary of Duferco Participations, collectively Vanchem.
"The transaction remains on track to be completed on 31 October 2019 and we expect the outstanding conditions precedent, being the cession of specific commercial agreements and South African Reserve Bank approval, to be satisfied," the company said late on Thursday.
It said negotiations with local banks for a debt facility to supplement existing cash resources were progressing.
"Competition Commission approval marks yet another key milestone in closing this exciting transaction," CEO Fortune Mojapelo said.
"We remain on track to complete the acquisition within our targeted timeframe, at which point we will have significantly increased our processing capacity, giving us 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.
Mojapelo said significant progress was being made in respect of the preparation ahead of the integration of Vanchem after closure of the transaction.