Bushveld Minerals Ltd (LON:BMN) (OTCMKTS:BSHVF) is to take an 8.71% interest in a newly-created entity called Invinity, created by the proposed merger of RedT Energy with Avalon Battery Corporation which has now received shareholder approval
The merger will create a leading player in the growing energy storage market with a presence in North America, Europe, sub-Saharan Africa and Asia.
In addition to the funding from Bushveld, Invinity has raised £7.9mln through an equity placing at 1.65p per share.
Bushveld revealed in November that it would support the merger in the form of a US$5mln convertible loan. That loan will now convert into just over 3mln shares.
Bushveld entered into a joint venture agreement with redT on 9 March 2020 to form a vanadium financing partnership to supply vanadium electrolyte to be used in third party-owned vanadium redox flow battery (VRFB) projects developed by redT. The joint venture agreement will be transferred to Invinity.
"At only a few months old, our VRFB Investment Platform is already gathering momentum on the back of the investments made to date,” said Fortune Mojapelo, chief executive Bushveld Minerals Limited in a statement.
"Invinity starts its journey with a strong project pipeline already in place, one which it plans to grow even more in the future. Despite the global impact of the Covid-19 (coronavirus) pandemic, the fundamental need for long duration energy storage to support the energy transition has not changed.
The benefit to Bushveld of supporting this downstream vanadium-based industry is already becoming clear, and Bushveld continues to support the growth and its participation in the energy storage industry," he added.