Bushveld Minerals Files for Liquidation, Eyes Sale of South African Assets

In a dramatic turn for South Africa’s vanadium mining industry, London-listed Bushveld Minerals has filed for liquidation and is seeking to sell off its South African operations. The company’s board has admitted it cannot meet its financial obligations and has applied to the Commercial Court of Guernsey to appoint joint liquidators, as it no longer has the means to continue trading.

Board Resigns to Liquidation Path

According to the company, its corporate service provider resigned effective April 4 and has formally withdrawn Bushveld’s registered office status. In response, the board is requesting that Adrian Rabet and Clive Fortis of Begbies Traynor Group be appointed as joint liquidators at a hearing set for April 15.

Once appointed, the liquidators will assume control of Bushveld’s affairs, including serving as the company’s corporate registered office, and oversee the process of winding down operations to preserve value for creditors and stakeholders.

Adding to its challenges, SP Angel Corporate Finance, Bushveld’s nominated adviser and broker, has notified the company of its intent to resign upon the appointment of the liquidators. Unless a replacement adviser is found within one month, Bushveld’s shares will be delisted from the Alternative Investment Market (AIM).

No Intention to Replace Adviser or Continue on AIM

The company has confirmed that it does not intend to appoint a replacement nominated adviser, effectively setting the stage for a full delisting from AIM.

South African Entities Likely to Be Sold

Bushveld’s situation deteriorated following previous announcements about business rescue proceedings related to its key South African subsidiaries:

• Bushveld Vametco Alloys

• Bushveld Vametco Holdings

• Bushveld Minerals SA

The company now reports that the business rescue plan has been delayed until mid-April, and the anticipated restart of mining and processing operations at Vametco—once expected by the end of Q1—has not materialized.

Adding further strain, all head office staff employed through Bushveld Minerals SA have had their employment terminated.

Based on discussions with the joint business rescue practitioners, the most probable outcome is the sale of Bushveld’s South African operations, though the proceeds are expected to benefit only secured creditors, with no return to Bushveld itself.

Creditors and Investors Still in Talks

Meanwhile, the board says it has been engaging with creditors, joint venture partners, and potential investors to explore any remaining paths to recover value from the group’s remaining assets. These negotiations are ongoing and have yet to yield a definitive outcome.

The collapse of Bushveld Minerals marks a sobering moment for the vanadium mining industry and AIM-listed mining stocks. The outcome of the Guernsey court hearing on April 15 will now be closely watched by creditors, former employees, and investors as Bushveld’s future hangs in the balance.

{Source: Mining Weekly}

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