Bushveld Minerals Limited (AIM: BMN), the AIM-quoted, integrated primary vanadium producer and energy storage solutions provider, with ownership of high-grade assets in South Africa, is pleased to report on the judgement outcome of the litigation as set out below.
As announced on 14 July 2021, Garnet Commerce Limited (“Garnet”) issued a claim form in the English High court against VRFB Holdings Limited (“VRFB-H”) and Enerox Holdings Limited (“EHL”). EHL owns a 100 per cent interest in Enerox GmbH (“Enerox”), a Vanadium Redox Flow Battery manufacturer, providing grid scale and micro-grid energy storage solutions.
Garnet’s claim form sought declarations against VRFB-H concerning an alleged breach of the joint venture agreement in relation to EHL. The alleged breach was in respect of the indirect investment, announced on 27 April 2021, into EHL by Mustang Energy Plc through VRFB-H, in terms of which Mustang acquired a 22.1 percent shareholding in VRFB-H in return for an investment of US$7,5 million.
The Company notes the judgment handed down earlier today in the High Court of Justice: Business and Property Courts of England and Wales (Chancery Division) in the matter between Garnet Commerce Limited (Claimant), VRFB Holdings Limited and Enerox Holdings Limited (Defendants) and 2289609 Alberta Limited (Third Party) [Claim No. BL-2021-001153].
The judgement outcome vindicates the position that the investment by VRFB Holdings Limited (“VRFB-H”) into Enerox Holdings Limited (“EHL”), funded as it were partly from an investment by Mustang plc (“Mustang”), was entirely appropriate and not in violation of any agreements. Accordingly, the investment by Mustang into VRFB-H, and the investment by VRFB-H into EHL,continue to be in place. As previously announced, Mustang’s investment into VRFB-H constitutes a reverse takeover according to the AIM Rules. As such, Mustang shares will remain suspended while it prepares a prospectus on its investment into VRFB-H.
Meanwhile, Bushveld and Mustang have agreed on the extension of the notice period for Mustang to issue notice in respect of the backstop as announced on 19 January 2022, by a further 72 hours to close of business on Thursday, 10 March 2022 to allow both parties to digest the judgment and its implications. The Company will provide further updates in due course
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