- Vanadium producer Bushveld Minerals entered into an agreement with Vanchem Vanadium Products to conditionally acquire its vanadium production assets in South Africa for $68m.

The assets acquired included, the vanadium plant of Vanchem Vanadium Products, the ferrovanadium production business and Ivanti Resources, a subsidiary of Duferco Participations Holding S.A, which had economic rights to certain secondary vanadium units treated within the Vanchem Plant.

The company acquired the Vanchem Business and 100% of the outstanding shares of Ivanti for an aggregate consideration of US$68m.

For a 12 month period after completion of the transaction, Vanchem Vanadium Products would be entitled to 50% of the profits made by Ivanti.

'This highly strategic transaction combines our existing portfolio of high-grade low-cost primary vanadium resources, including the Mokopane greenfield deposit, with an established production facility,' said Fortune Mojapelo, CEO of Bushveld Minerals.

'This substantially reduces the capital required to bring the Mokopane Project into production, while also bringing it online in a much shorter timeframe than if we were to construct a new plant. We consider ourselves the ideal buyer for these businesses and given our sound portfolio of high quality deposits and a strong operating base established with Vametco, now is the perfect time to take advantage of this opportunity.'

At 8:45am: [LON:BMN] Bushveld Minerals share price was +2.7p at 27.5p

Story provided by