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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
17 November 2017
Bushveld Minerals Limited
("Bushveld" or the "Company")
Lemur Resources Appoints Owner's Engineer and Technical Advisors for Bankable Feasibility Phase for the Imaloto Power Project
Bushveld Minerals Limited (AIM: BMN), a mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and an investment in tin, is pleased to provide the following update about Lemur Resources ("Lemur"). Lemur, Bushveld's coal and energy subsidiary that is developing an integrated thermal coal mining and Independent Power Producer asset in Madagascar, has concluded an open market Request for Proposals ("RFP") process in October 2017 for all studies and services required to complete the Bankable Feasibility Study ("BFS") for the Imaloto Power Project in Madagascar ("the Project").
In addition, following Anthony Viljoen's appointment as Chief Executive Officer of AfriTin Mining, Prince Nyati, previously Project Head of Lemur, has been appointed as Chief Executive Officer of Lemur, effective from 9 November 2017. Anthony will remain on the Board of the Company as a non-executive director.
Commenting on these developments, Fortune Mojapelo, CEO of Bushveld Minerals, said:
"The appointment of an owner's engineer and other technical advisors is an important step towards the completion of the BFS for the Imaloto Power Project. The nomination of an environmental advisor demonstrates our commitment to comply with the social and environmental impact regulations in Madagascar. More importantly, the Social Environmental Impact Assessment (SEIA) will pave the way for us to proceed with major works at our project site.
"In addition, to the above, our discussions with Jiro sy Rano Madagascar (JIRAMA) regarding a long term Power Purchase Agreement (PPA) are at an advanced stage and given the support we have received from both the Government and JIRAMA so far, we are confident that a PPA will be concluded soon.
Overall, these new developments will ensure that the Project remains on course and they will also reinforce our commitment to delivering reliable, affordable base load power to the people of southern Madagascar and in so doing, help to kick-start the unprecedented economic development activities in the region. Furthermore, I wish to congratulate Prince on his new appointment."
· Following the conclusion of the RFP process, Lemur has appointed Advisian / Worley Parsons as the Owner's Engineer for the Project. Advisian's key roles will be to provide review and oversight during the bankable feasibility phase regarding technical, financial, and commercial aspect of the project, including the interface with Lemur's technical partner, Sinohydro Corporation Limited ("Sinohydro") on the BFS;
· In addition, Worley Parsons is assigned to oversee completion of the SEIA in accordance with the laws of Madagascar and IFC standards. Worley Parsons will shortly commission a Malagasy based specialist to carry out carry out the SEIA. The selection process for a local SEIA specialist will be concluded in November 2017;
· Energy System Planning (ESP) has been appointed as technical advisors to finalize transmission routing and mapping as well as associated load studies on the project;
· Lemur is in advanced discussions with Madagascar state-owned water and utility company JIRAMA, over a long-term PPA, with most of the key terms agreed.
Bushveld Minerals Limited
Fortune Mojapelo +27 (0) 11 268 6555
Lemur Resources Limited
Prince Nyati +27 (0) 11 268 6555
SP Angel Corporate Finance (Nominated Adviser and Broker)
Ewan Leggat +44 (0) 20 3470 0470
Blytheweigh (Public Relations)
Tim Blythe / Nick Elwes +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
- ENDS -
Notes to editors
About Lemur Resources
Lemur Resources is a wholly-owned subsidiary of Bushveld Minerals Limited currently developing an integrated 60MW mine-mouth coal-fired power plant, with a transmission line of over 200km in southern Madagascar ("the Project"). The Project is in the bankable phase. Lemur's technical partner, Sinohydro, is currently conducting the BFS, expected to be completed in the first half of 2018. Bushveld Minerals has approved the budget to fund all the Project development activities for completion of the BFS, SEIA and the finalization of the PPA .
About Bushveld Minerals Limited
Bushveld Minerals is an AIM listed mineral project development company with a portfolio of vanadium and coal assets in Southern Africa, including interest in a vanadium-producing operation and an investment in tin.
The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and an interest in Bushveld Vametco Alloys primary vanadium mining and processing company. The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.
Bushveld's vision is to become one of the largest low cost integrated primary vanadium producers through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
The Company's approach to project development recognises that whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capital expenditure requirements and scalability are important factors in retaining an attractive exit option. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com
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