SOUTH AFRICA - Bushveld Minerals Limited, a primary vanadium producer, has announced an extended shutdown of its Vametco plant as part of a business rescue plan. The shutdown, which began recently, will last until the end of March 2025. This move follows the appointment of Piers Marsden and Jenna Osborne from Matuson & Associates as joint business rescue practitioners (Joint BRPs) for the company's South African entities.
The Joint BRPs held a creditors' meeting on a previous Monday where they outlined the reasons for the business rescue. They have secured post-commencement funding and expect to publish a detailed business rescue plan in January 2025. The plant maintenance aims to optimize the turnaround by addressing critical parts of the operation, which will contribute to revenue generation and future sustainability. The company anticipates that once the plant resumes operations, it will operate near full capacity with enhanced reliability.
In the interim, Bushveld's Board is actively seeking ways to realize value from the remaining group assets, including discussions with the Joint BRPs regarding potential repayments to the company, considering its position with the secured creditor.
However, due to the significant uncertainty surrounding the South African operations, the Board has sought legal and insolvency advice regarding their responsibilities and available options. They acknowledge that unless sufficient asset value is realized or new capital is raised, the company may not be able to continue as a going concern.
Further updates will be provided as they become available. This development is part of the ongoing efforts by Bushveld Minerals to address its operational challenges and secure the future of its vanadium production capabilities. The information reported is based on a press release statement from Bushveld Minerals Limited.
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