Bushveld Minerals Amends Agreement to Purchase Strategic Minerals

Bushveld Minerals (LSE:BMN) has amended its share purchase agreement to acquire Strategic Minerals Corporation from Evraz Group.
As quoted in the press release:

Bushveld Vametco Limited, in which Bushveld will have a 45 per cent. interest, has reached agreement with Evraz to adjust the consideration payable pursuant to the Acquisition and restructure the  two stage completion into one. Yellow Dragon Holdings Limited (“Yellow Dragon”) will hold the remaining 55 per cent. in Bushveld Vametco Limited and remains committed to providing its share of the Acquisition funding. The agreed amendments eliminate the risk of partial completion of the Acquisition.

A summary of the key amendments to the SPA is provided below:

§ Combination of the original Tranche 1 and Tranche 2 completions into a single stage completion. The transaction is now scheduled to complete on or before 31 March 2017, approximately three months earlier than the previous long stop date of  15 July 2017. Completion remains subject to Bushveld and Yellow Dragon providing the necessary funding to finance the Acquisition and is subject to the previously announced regulatory approvals being obtained;  

§ Final agreed adjustment to the US$17,206,909 acquisition consideration to US$16,466,000 in accordance with working capital and net debt provisions. The amended agreement further provides for a consideration reduction mechanism as incentive for early completion;

§ Payment of an additional amount of US$646,000 as security for completion, which, together with the exclusivity fee and completion security fee paid to date of US$1,000,000 in aggregate,  will be set off against the final purchase price; and

§ Bushveld Vametco will be assigned a seat on the board of SMC with observer status, up to transaction completion.

Click here for the full press release.