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Mustang Energy PLC on Monday said it entered into a deal with Bushveld Energy Ltd to acquire its 51% stake in VRFB Holdings.
Bushveld Energy is the 84%-owned subsidiary of Bushveld Minerals Ltd, a South Africa-focused vanadium producer and energy storage provider.
The London-based special purpose acquisition company said the consideration for the sale is $19.4 million, which will be satisfied by the proposed issue to Bushveld Energy of 79.4 million new Mustang shares at 20.00 pence per share.
VRFB-H’s is a 50% shareholder in Enerox Holdings Ltd, an Austrian-based vanadium redox flow battery manufacturer, which in turn holds the entire issued share capital of Enerox GmbH.
Enerox has invested 20 years into the research and development of its energy storage system, CellCube.
As part of the sale, Mustang said Bushveld Energy will have the right to appoint two directors to the board of the enlarged group and will enter into a lock-in agreement and relationship agreement.
‘CellCube is a market leader in the vanadium-based energy storage sector, a sector which is increasingly being recognised as a critical component of global efforts towards net-zero emissions,’ Mustang Managing Director Dean Gallegos said.
Mustang shares are suspended from trading in London. Shares in Bushveld rose 0.6% to 4.93p.
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