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Bushveld completes US$16.5M deal for 78.8% stake in Strategic Minerals

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Bushveld completes US$16.5M deal for 78.8% stake in Strategic Minerals

Bushveld Minerals Ltd. unit Bushveld Vametco Ltd. completed the acquisition of Evraz Group SA's 78.8% stake in Strategic Minerals Corp. NL for US$16.5 million, the company said April 6.

Strategic Minerals owns the Vametco vanadium mine and plant in South Africa.

Deal financing included cash payments of US$1.6 million to Evraz, a bridge loan facility of up to US$11 million from Barak Fund SPC Ltd., a US$3 million product prepayment facility from Wogen Resources Ltd. and a cash contribution of US$820,000 from Bushveld Minerals and Yellow Dragon Holdings Ltd.

The company first announced the deal in April 2016 and went on to amend the agreement in July 2016 after flagging a delay the month before.

Bushveld Minerals noted that the acquisition is in line with its strategy to develop a significant, vertically integrated vanadium platform and accelerate its path to production.