Bushveld Minerals Limited (LON:BMN), the integrated primary vanadium producer and energy storage provider, has revealed that its 84%-owned Enerox Holdings Ltd has acquired a further 65.1% of the share capital of Enerox GmbH.
The investment is in line with the company's strategy of establishing a vanadium redux flow battery investment platform to lead investments in VRFB original equipment manufacturers with attractive upside potential.
The Enerox battery product is one of the most widely deployed over the past 10 years, offering a unique value proposition in the industry.
Enerox has a global customer base with over 130 field installations over the past 10 years, across five continents.
Under a separate agreement that’s proposed, it is intended that Bushveld will be awarded a right of first refusal to supply vanadium products to Enerox on the same material terms as any other supplier. This would provide a future hedge to Bushveld's position against volatility in the vanadium price once the VRFB market has developed.
Under the agreement, Bushveld’s majority-owned Enerox Holdings Ltd will pay a nominal amount for the Enerox shares but provide a new secured shareholder loan facility of €3.7mln to Enerox. The loan is designed to take Enerox to commercial production.
EHL will hold 90% of the share capital in Enerox, while the seller will remain as a 10% shareholder.