Bushveld Minerals seals conditional deal on Vametco vanadium mine
Bushveld Minerals has announced it has sealed a conditional deal on Vametco vanadium mine. Craig Coltman, CEO of the firm revealed the report and said the deal allows Bushveld Minerals to have full operational, management, and financial control of Vametco, allowing the group to have complete control over Vametco’s cash flows.
Full control
The acquisition is expected to be immediately value accretive to Bushveld Shareholders and enhance earnings per share going forward. 70% of the shares issued as part of the consideration will be subject to a 6-month lock-in period.
After completion of the transaction, the company will no longer account for non-controlling interests in BVH, streamlining its financial reporting. This move allows Bushveld Minerals to consolidate its structure, take full control of the Vametco asset, and align its ownership with the changing regulatory landscape in South Africa. The acquisition is expected to have positive effects on Bushveld Minerals’ financials and strategic position.
“This consolidation is aligned with changes in South Africa’s Black Economic Empowerment (BEE) ownership requirements. By transferring this interest to a stake at the top level of the company, Bushveld aims to provide value in a listed stock and offer access to the company’s future growth plans,” said CEO Coltman.
