Diversified mineral development company Bushveld Minerals Limited (LON:BMN) is set to have a new partner when it completes the acquisition of Vametco Holding.
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Bushveld has agreed to facilitate a change in the ownership of one of Vametco's Black Economic Empowerment (BEE) partners.
Jaxson 640, led by investment professional Bill Chipane, is to acquire a controlling interest in the BEE shareholdings in Vametco from a consortium led by Avacap, giving it a 21.2% stake in Vametco .
The Jaxson transaction will take place alongside Bushveld's proposed acquisition of a 78.8% interest in Strategic Minerals Corporation from the Evraz Group, which was announced last May.
For its part, Bushveld Minerals has agreed to support Jaxson 640 in its efforts to raise finance for the consideration of some ZAR7.4 million to be paid to the Avacap Consortium.
"We are pleased to welcome Jaxson 640 as our BEE partner of choice in Vametco Holdings,” said Fortune Mojapelo, chief executive officer of Bushveld.
“Jaxson 640 will ... include a shareholding for a Trust focused on empowering HDSA women and youth in the communities that Vametco operates, with particular emphasis on education, entrepreneurship and enterprise development. The involvement of the communities through a Community Trust presents an opportunity to pro-actively ensure that the economic interest in Vametco Holdings dedicated to local communities can be applied in a proactive and strategic manner that delivers measurable and sustainable economic benefits for the communities concerned,” Mojapelo added.
Shares in Bushveld surged 10.7% to 3.1p on the news.