(Alliance News) - Bushveld Minerals Ltd on Tuesday said it has agreed a deal with Southern Point Resources Fund I SA LP to sell Vanchem for up to USD40.6 million.

Bushveld is a vanadium producer operating the Vanchem and Vametco processing facilities in South Africa.

This includes an initial USD20.6 million plus a deferred consideration of between USD15 million and USD20 million, the company said.

The proposed terms replace those announced in November for the sale of a 50% interest in Vanchem to SPR.

Bushveld said the disposal is conditional upon shareholder approval.

Shares in Bushveld were flat at 0.70 pence each in London on Tuesday afternoon.

By Sabrina Penty, Alliance News reporter

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