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Conditional deal a transformational event for Bushveld mining

Diversified mineral development company, Bushveld Minerals, has announced an update with regards to the conditional acquisition of Strategic Minerals Corporation (SMC).

The acquisition of a 78.8% interest in the company by Bushveld’s Vametco from Evraz Group is a major transformational event for Bushveld, said the company.

In a statement, Bushveld noted that both SMC and Sojitz Noble Alloy’s Corporation have agreed to waive their respective pre-emptive rights.

The waivers of pre-emptive rights by SMC and Sojitz form part of the conditions that will need to be fulfilled prior to completion of the transaction.

Commenting about the waivers, Fortune Mojapelo, CEO, Bushveld Minerals, said “We are pleased to receive confirmation of the waivers of pre-emptive rights by SMC and Sojitz, as it is one of the most important hurdles to cross towards completion of the SMC transaction.

“We look forward to securing the Department of Mineral Resources’ Ministerial consent to the transaction in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002.”

In addition to finalising the financing, as announced on 8 March 2017, the company is making good progress in fulfilling the remaining conditions, which include,

  • Termination of all the related party contracts to Bushveld’s reasonable satisfaction;
  • Transfer of the marketing and off-take agreements;
  • Key management’s agreement in writing to remain employed with the Vametco Group following transaction completion; and
  • Securing the Department of Mineral Resources’ Ministerial consent to the transaction in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002.

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