Bushveld Minerals Limited has rejigged the arrangements surrounding the investment into battery arm VRFB-H by Mustang.
One of the investors in Mustang, Primorus, will now receive convertible loan notes in Bushveld that can be exchanged into shares in six periods running until July 2023.
Mustang will issue a US$1.5mln convertible loan note to Bushveld, while the backstop date to complete the investment into VRFB-H has been extended until 31 July 2022.
Fortune Mojapelo, Bushveld’s chief executive, said: " The investment by Mustang into VRFB-H was part of the company's strategy to leverage its relationships and capital in support of Enerox Holdings Limited's (EHL) capital requirements.”
Mustang could not proceed until the litigation initiated by VRFB-H's partner in EHL had been resolved, which it now has, he added.
“The decision of Primorus, one of the four investors in Mustang, to exercise the Backstop arrangement is noted and respected.
“The BMN CLN has been designed to limit any potential overhang on the BMN share price by structuring any conversion in six equal tranches over a period of 18 months."
Bushveld originally announced the investment into EHL by Mustang Energy PLC (LSE:MUST) (Mustang Energy PLC (LSE:MUST)) through VRFB-H in April 2021,
Sahres in Bushveld rose 7% to 12.6p.