Bushveld Minerals strikes lower-priced deal to acquire Vanchem

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Vanadium producer Bushveld Minerals said it had struck a lowered-priced deal to acquire Vanchem from following ongoing weakness in vanadium prices.

The acquisition price was reduced to $53.5m from $68m, of which US$30m would be paid in cash and the balance through the issue of Bushveld Minerals unsecured convertible loan notes.

'The improved terms take into account current market conditions while affirming the medium to long term vanadium market outlook of the company, which is the natural buyer of Vanchem,' the company said. 'With this acquisition, the company will have two quality primary processing assets producing a complementary suite of products, with a four kiln configuration, that gives it unmatched production flexibility,' it added.

At 10:06am: (LON:BMN) Bushveld Minerals share price was -0.5p at 27p