The Competition Commission has approved the acquisition by Southern Point Resources (SPR) Fund I of Mokopane, the holding company for a mining right in South Africa’s Limpopo province.
SPR Fund I was established as an investment fund by the SPR group, based in London, for mining projects in Southern Africa, particularly green metals and transition metals.
SPR Fund I is acquiring Mokopane from Bushveld Resources – a subsidiary of Bushveld Minerals.
Mokopane’s mining right allows for the extraction of minerals including vanadium and titanium.
The transaction involves Bushveld selling its 64% interest in Mokopane to SPR Fund 1 for $3.7-million.
The Mokopane project is located on the central portion of the northern limb of the Bushveld Complex with resources and reserves of 298-million tonnes, grading from 1.6% to more than 2% vanadium oxide.
SPR Fund I’s acquisition of the interest in Mokopane forms part of a proposed package of interconditional transactions, which would provide a cumulative investment by SPR into Bushveld and its subsidiaries of about $70-million.
The companies also agreed to a sale and marketing agreement whereby SPR will carry out all marketing and sales of vanadium product produced at Bushveld’s Vametco and Vanchem plants on an exclusive basis.