Bushveld confirmed in a statement that Jaxson 640 completed the acquisition of the Avacap Consortium’s interest in Vametco and will now replace the Avacap Consortium as major BEE partner to Strategic Minerals Corporation.
“We are delighted to announce, now that all the conditions have been satisfied, that the Jaxson 640 transaction Bushveld supported and vendor financed is now complete. We are pleased to have the Jaxson 640 team and the local land-owners and communities, who are beneficiaries of this transaction,as our partners at Vametco and look forward to working with them in future,” said Fortune Mojapelo, CEO of Bushveld Minerals.
Under the terms of the acquisition, Jaxson 640 has agreed to purchase the Avacap Consortium’s interest in Vametco for a total R 8.5 million, which considers the purchase price of R5 million, a shareholder loan, with interest, of R2 million principal, and an additional R 1 million premium.
The acquisition was conditional on, among others,
- The completion of the acquisition of SMC by Bushveld Vametco Limited;
- Bushveld entering into theGingko Agreement in terms of which Bushveld would settle all demonstrable funding (and accumulated interest thereon) that Gingko advanced to the Avacap Consortium aspart of the 2014 acquisition of the BEE shareholding in Vametco;
- Consent to the transaction being granted by Nedbank Limited, the lenders to the Avacap Consortium’s original BEE transaction with Vametco.