Response to AIM Disciplinary Notice

RNS Number : 7456J

Bushveld Minerals Limited

07 December 2018

 

Bushveld Minerals Limited

("Bushveld Minerals" or the "Company")

Response to AIM Disciplinary Notice

The Board of Bushveld Minerals Limited (AIM: BMN) announces London Stock Exchange has determined a public censure of the Company and a fine of £700,000, discounted to £490,000 for early settlement. The public censure relates to breaches by the Company of AIM Rules 11 and 31 that occurred in April 2016 concerning an undertaking to pay an exclusivity fee to the vendors of Vametco, as notified by the Company on 22 April 2016.

The Company has co-operated fully with the London Stock Exchange's enquiry and that, prior to these events, the Company had no previous breaches of the AIM Rules recorded on its disciplinary record.  The Company has accepted the findings of the investigation and has agreed to the settlement terms. The fine will be paid using internal resources.

The Exchange Notice is available at:

https://www.londonstockexchange.com/companies-and-advisors/aim/advisers/aim-notices/aim-notices.htm

Ian Watson, Independent Non-Executive Chairman, commented:

"The transaction in question has been at the heart of the Company's rapid transformation from a junior exploration company with a market cap of under £20 million to a significant and growing integrated mining and processing company, one of the largest mining companies listed on AIM with a market cap in excess of £450 million. This transition came with challenges in respect of both management and governance capacity of the Company, which the Company has, and continues to, proactively address.

"The Company's actions were informed by an intent to protect the economics of its shareholders and avoid unnecessary dilution, in a transaction it saw as transformational. However, the Company acknowledges that if it had engaged more fully with its nominated adviser as required under the AIM Rules, it could have met its regulatory obligations whilst also meeting its commercial objectives and the Company regrets the consequent breaches of the AIM Rules.

"In the intervening period since the events in question, Bushveld Minerals has undergone key board and operational changes; standards of governance, procedures, controls and communication have significantly improved."

Fortune Mojapelo, Chief Executive Officer, commented: 

"The Company has expressed regret in relation to the breaches arising from these matters and reiterates that it takes its AIM Rules obligations seriously and has put in place measures to ensure that the events giving rise to these breaches are not repeated in the future.

Today's settlement allows Bushveld Minerals to move forward. Since April 2016, Bushveld Minerals has transformed from a junior mining exploration company with a market capitalisation of under £20 million to a primary vanadium producer with a market capitalisation in excess of £450 million."

Enquiries: [e-mail]

Bushveld Minerals		[phone]
Fortune Mojapelo, Chief Executive Officer
Chika Edeh, Head of Investor Relations
SP Angel Corporate Finance LLP	Nominated Adviser & Broker	[phone]
Ewan Leggat / Richard Morrison
Jonathan Williams / Richard Parlons
Alternative Resource Capital	Joint Broker
Rob Collins		[phone]
Alex Wood		[phone]
Tavistock	Financial PR
Charles Vivian / Gareth Tredway		[phone]
Lifa Communications	Financial PR (South Africa)
Gabriella von Ille		[phone]

 

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