Bushveld comes one step closer to acquiring Strategic Minerals interest
(ShareCast News) - Southern Africa-focussed diversified mineral development company Bushveld Minerals updated the market on the conditional acquisition by Bushveld Vametco of a 78.8% interest in Strategic Minerals Corporation from Evraz Group on Friday.
The AIM-traded company advised that it received confirmation that both Strategic Minerals Corporation and Sojitz Noble Alloy's corporation agreed to waive their respective pre-emptive rights, in terms of the SMC Shareholders Agreement, to acquire the SMC shares Bushveld Vametco agreed to acquire pursuant to the transaction in respect to all the offer shares.
The waivers of pre-emptive rights by SMC and Sojitz formed part of the conditions precedent to be fulfilled prior to completion of the transaction, the board said.
In addition to finalising the financing, as announced on 8 March, the company was making good progress in fulfilling the remaining conditions precedent which included the termination of all the related party contracts to Bushveld's reasonable satisfaction, the transfer of the marketing and offtake agreements, key management agreement in writing to remain employed with the Vametco Group following transaction completion, and securing the Department of Mineral Resources' ministerial consent to the transaction in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002.
The board said further updates would be provided as appropriate.
"We are pleased to receive confirmation of the waivers of pre-emptive rights by SMC and Sojitz, as it is one of the most important hurdles to cross towards completion of the SMC transaction," said Bushveld CEO Fortune Mojapelo.
"We look forward to securing the Department of Mineral Resources' Ministerial consent to the Transaction in terms of section 11 of the Mineral and Petroleum Resources Development Act, of 2002."