Appointment of Business Rescue Practitioners

Bushveld Minerals Limited

19 November 2024

 

Market Abuse Regulation ("MAR") Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

19 November 2024

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Appointment of Business Rescue Practitioners

Further to the announcement of 18 November, the Board of Bushveld Minerals announces that it has placed its principal operating subsidiary, Bushveld Vametco Holdings (Pty) Limited ("BVH"), along with Bushveld Vametco Alloys (Pty) Limited ("BVA") and Bushveld Minerals SA (Pty) Limited ("BMSA") (collectively the "South African entities"), into Business Rescue.

BVH is the Company's mining right holder, whereas BVA is the company appointed to conduct mining and incidental services on behalf of BVH. BMSA is the company used for the South African head office located in Johannesburg.

A business rescue proceeding affords the South African entities protection from legal action while their future is assessed and potential plans to rescue the business are implemented. The Company has nominated Piers Marsden and Jenna Osborne of Matuson &  Associates to be its joint business rescue practitioners, which is in the process of being filed with the Companies and Intellectual Property Commission. Matuson & Associates has significant experience in business rescue, turnarounds and corporate restructures in the South African mining sector. The process focuses on  operations continuing  while the practitioner assists with turn around and finding funding solutions.

The Company is engaging with its advisors, including Guernsey insolvency practitioners, in respect of potential courses of action for Bushveld Minerals.

Further announcements will be made in due course as appropriate.

Craig Coltman, CEO of Bushveld Minerals commented:

 "This was not an easy decision to take or one that was done lightly, however, in the current circumstances, it is the only course of action that the Board could take in the interest of all stakeholders.

The principal conditions that have led the Board to this decision are  the depressed vanadium market that has resulted in us operating at a loss for an extended period of time; the lack of cash availability that restricted the amount of maintenance and repairs that could be done at Vametco, resulting in heightened levels of plant breakdowns and production loss; historically high, long outstanding creditor balances; and failure to procure suitable funding from existing stakeholders or third parties despite efforts to do so. 

Matuson & Associates have significant experience in turnaround situations and share our belief that there is reasonable cause for business recovery."

Enquiries :  [e-mail]

Bushveld Minerals Limited		[phone]
Craig Coltman, Chief Executive Officer
SP Angel Corporate Finance LLP	Nominated Adviser & Joint Broker	[phone]
Richard Morrison / Charlie Bouverat
Grant Barker / Abigail Wayne
Hannam & Partners	Joint Broker	[phone]
Andrew Chubb / Matt Hasson / Jay Ashfield
Tavistock	Financial PR	[phone]
Gareth Tredway / Tara Vivian-Neal / James Whitaker

ENDS

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a primary vanadium producer. It is one of the world's three primary vanadium producers, offering compelling exposure to vanadium through its upstream asset.

Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com

 

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