13th Sep 2018 10:19
LONDON (Alliance News) - Bushveld Minerals Ltd said Thursday it has raised its interest in the Vametco vanadium mine located near Pretoria, South Africa, to 75% from 59.1%.
Shares in Bushveld Minerals were trading 18% higher at 22.35 pence each in London on the back of the news.
The exploration company has acquired the entire 21.22% interest that Sojitz Noble Alloys Corp held in Strategic Minerals Corp, the 75% owner of Vametco, for USD20 million in cash.
Following completion of the deal, Bushveld via its Bushveld Vametco Ltd unit will own 100% of Strategic Minerals Corp and therefore have an indirect beneficial interest of 75% in the Vametco mine. The company used its existing cash resources to complete the stake acquisition.
On Wednesday, Bushveld Minerals said that the previously announced unprotected industrial action at Vametco mine has been continuing and workers have not yet returned to work. The strike relates to claims by the local leadership of the majority union at Vametco, the Association of Mineworkers & Constructions Union, for a payment of cash in respect of an Employee Share Options Scheme.
The company said the claim had no basis and that it has taken all reasonable steps to urge workers to stop the illegal strike and return to work.
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