Bushveld Minerals said it will issue shares equivalent to 17% of its equity capital after a July deadline for Mustang Energy to resume trading passed.
Mustang Energy had issued £7.1 million of loan notes convertible into Bushveld shares as part of their joint investment in battery storage group VRFB-H.
Rather than extend the redemption date, note holders decided to convert into Bushveld shares.
On completion, Mustang will transfer its 22.1% interest in VRFB-H and novate its rights under the US$2 million loan made to Enerox GmbH, VFRB-H’s main asset, to Bushveld Minerals.
Bushveld Minerals and Bushveld Energy (the miner’s battery arm) will then hold 22.1% and 50.5% in VRFB-H respectively.
Mustang Energy shares remain suspended on the standard market while Bushveld dipped 3% to 2.5p.