Bushveld Minerals Limited Update on CPA with Evraz for Strategic Minerals Corporation

Bushveld Minerals Limited

Bushveld Minerals Limited (LON:BMN), a diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, has provided an update in respect of the acquisition of Strategic Minerals Corporation (“SMC”) from Evraz Group SA (“Evraz”) (the “Transaction”).

Bushveld Vametco Limited (“Bushveld Vameco”), in which Bushveld has a 45% interest, signed an amended and restated Share Purchase Agreement (“SPA”) on 22 July 2016, in terms of which it would, in a single stage, acquire all the shares held by Evraz in SMC, subject to financing and the fulfilment of several conditions precedents.

Since the July announcement, Bushveld Vameco has secured unconditional approval from the Competition Commission for the transaction. An application in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002 (“MPRDA”) for the Ministerial consent to the Acquisition was lodged with the Department of Mineral Resources and is currently being evaluated.

Furthermore, Bushveld Vametco was required, under the terms of the SPA, to provide proof of funding on 28 February 2017 in a form acceptable to Bushveld Vametco, acting reasonably, for the balance of the consideration payable to Evraz, being US$14.8 million. Accordingly, Bushveld Vameco has provided the required proof of funding to Evraz subsequent to which both Bushveld Vametco and Evraz have since commenced preparations for the completion of the Transaction by the long stop date of 31 March 2017.

Bushveld Vametco has secured funding support for the balance of the acquisition comprising debt and mezannine debt instruments in respect of which it has signed term sheets. Bushveld Vametco is in advanced stages of negotiating definitive legal agreements.

Further updates will be provided as appropriate.

Bushveld Minerals Limited is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company’s flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar’s leading independent power producers, makes up the Company’s coal platform.

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