Bushveld Highlights Investment By Mustang Energy Into Enerox

Bushveld Minerals Ltd (LON:BMN) announced Mustang Energy PLC (LON:MUST) is acquiring an indirect interest of 11.05% in Enerox GmbH.
Enerox is a vanadium redox flow battery manufacturer providing grid scale and micro-grid energy storage solutions. Bushveld holds an indirect 25.25% stake in Enerox.
Mustang is special purpose acquisition company which intends to acquire interests in energy storage and stationary battery assets.
Mustang has invested approximately US$7.5mln to subscribe for a 22.10% stake in VRFB-H, which directly controls Enerox.
Mustang has funded its investment by issuing of US$8mln of unsecured convertible loan notes at a 10 per cent coupon.
On 31 March 2021 Bushveld Energy invested US$5mln into VRFB-H and has invested approximately another US$2.7mln to retain its 50.5% holding of VRFB-H.
In turn, VRFB-H has invested US$15mln into Enerox to fund its part of a total US$30mln investment into Enerox.
The investment of VRFB-H into Enerox is in line with Bushveld Minerals’ strategy to mobilise capital to scale up growth and capacity of vanadium reflux flow battery manufacturers, either through self-funding mechanisms or through funding sharing arrangements such as this agreement with Mustang.
“We are pleased to complete the investment into Enerox by VRFB-H of the US$15mln announced on 1 April 2021 as part of a US$30mln financing to scale up Enerox’s manufacturing capacity,” said Bushveld’s chief executive Fortune Mojapelo.
“As previously mentioned, we believe that this additional capital will place Enerox on the path to becoming a major player in the stationary energy storage industry, while further cementing VRFB technology in this rapidly growing sector. We are also pleased to welcome Mustang as a shareholder in VRFB-H. Its listing on the London Stock Exchange and consequent access to public equity capital markets combined with its strategy to invest in the stationary energy storage value chain and renewable energy projects, make them an especially attractive partner for VRFB-H.”
www.ferroalloynet.com
Subscribe to receive daily Vanadium price and news

This will close in 0 seconds