Vanadium producer Bushveld Minerals (AIM: BMN) said Thursday that all outstanding conditions relating to the Vanchem acquisition, first announced in May have been completed.
Bushveld has acquired, through its wholly owned South African subsidiary, Bushveld Vanchem Proprietary, the Vanchem Plant from Vanchem Vanadium Products, a subsidiary of Duferco Vanadium Investment Holding S.A.; South African Japan Vanadium Proprietary, through Bushveld Minerals Limited, and 100% of the issued shares in Ivanti Resources from Duferco Participations Holding S.A.
The company has taken over VVP’s existing senior production team, which will provide operational stability while Vanchem is integrated into Bushveld Minerals. André Strydom has been appointed general manager of Vanchem, Bushveld said.
The total consideration for the acquisition was reduced from $68 million to $53.5 million, of which $30.5 million was payable in cash, $30 million on closing and $500,000 after two years. The balance, $23 million will be paid through the issue of convertible loan notes.
Revenue for the miner, which also owns the Vametco, Brits, and Mokopane projects in South Africa, jumped to $192.2 million in 2018, significantly more than the $79.2 million recorded in 2017.
Though Bushveld’s revenue and earnings soared in 2018 on near-record high vanadium prices, this year has been tough.
Bushveld’s shares closed the day down over 6% on the LSE at $22. The 52 week high is $50.19, and 52 week low is $19.50. The company has a $253 million market capitalization.
