Carey Olsen assists Bushveld in launch and acquisition

17 January 2018

Carey Olsen’s Guernsey corporate team has advised AIM-listed mineral project developer Bushveld Minerals Limited (Bushveld) on two transactions which are highly significant for its development.

This includes the launch of a new listed company, AfriTin Mining Limited (AfriTin).

Most recently, Carey Olsen advised longstanding client Bushveld on its acquisition of 55% of Bushveld Vametco Limited (Vametco) from Yellow Dragon Holdings Limited. The $12.3 million acquisition, completed on 21 December 2017, gives Bushveld ownership of 100% of the issued share capital of Vametco – a significant player in the global vanadium market.

Under the AIM Rules for Companies the deal constituted a reverse takeover, with the terms of the acquisition requiring shareholder approval and the re-admission of Bushveld to AIM.

Carey Olsen's involvement in the acquisition follows the firm's advice in relation to the recent demerger of Bushveld's tin mining assets from the Bushveld group. That demerger involved Bushveld transferring its tin mining assets to AfriTin, a newly formed Guernsey-registered company, the admission of AfriTin to AIM and a £4.5 million equity raising by AfriTin.

The demerger allows Bushveld to concentrate on the development of its vanadium and coal assets in Southern Africa and Madagascar.

On its first day of dealings in November, AfriTin had 297.5 million shares issued overall and a market capitalisation of £11.6 million. It is the only AIM-quoted, conflict-free tin mining company and aims to take advantage of the current global deficit for primary production of tin.

Partner Tony Lane led the Carey Olsen team in advising Bushveld on both transactions, with assistance from Associate Holly Cova. Gowling WLG acted as UK counsel.

Advocate Lane said: "Having advised Bushveld for a number of years, we are delighted to have been able to help guide the company to the successful conclusion of these transformational transactions, and to help establish the tin business as a separately listed entity. With AfriTin now able to focus entirely on becoming a primary tin producer, and with Bushveld able to refocus on its vanadium and coal platforms, we look forward to continuing to assist both companies in their further development.

"Guernsey continues to hold a strong position as a domicile of incorporation for companies listed on AIM, and Carey Olsen has been the leading offshore legal adviser to entities listed on the market for many years. In particular, we have been extremely active in the resources sector during 2017 and this expertise proved invaluable when advising Bushveld and AfriTin."

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