- Vanadium Resources is focused on getting the Steelpoortdrift vanadium project construction ready.
- During the latest quarter, the company increased its project stake to 86.49% and completed a 40% premium strategic placement of $5.91m (@$0.11 per share) to Matrix Resources (Zhejiang) Co. Ltd (“Matrix”, a wholly owned subsidiary of Zhejiang Lygend Investment Co. Ltd (“Lygend Investment”, together with its subsidiaries the (“Lygend Group”).
- VR8 is in productive discussions with Matrix for finalising a formal offtake agreement.
- Strong interest continues to be received from financing and offtake parties, with further non-binding indicative term sheets and expressions of interest provided.
Australian company Vanadium Resources Limited (ASX: VR8 DAX: TR3) is focused on advancing its Steelpoortdrift Vanadium Project in South Africa.
During the latest quarter, the company saw major developments including agreements to boost its stake in the project, completion of a strategic placement, discussions towards offtake agreements, and work streams to move towards front-end engineering design (FEED) studies.
The company concluded the period with a cash balance of over AU$6 million.
This article will discuss these activities undertaken during the June quarter.
Interest in Steelpoortdrift increased to 86.49%
During the June quarter, the company executed two separate conditional sale and option agreements with Obeec (Pty) Ltd and Math-Pin Trust to acquire 100% interest held by them in Vanadium Resources (Pty) Ltd.
With the conclusion of these agreements, the company boosted its project stake from 73.95% to 86.49%.
Placement and proposed offtake agreement with Matrix Resources
The company completed a ~40% premium strategic equity placement of AU$5.91 million to Matrix Resources (Zhejiang) Co. Ltd (“Matrix”, a wholly owned subsidiary of Zhejiang Lygend Investment Co. Ltd “Lygend Investment”), together with its subsidiaries the (“Lygend Group”). Under the arrangement, over 53.7 million shares were issued to Matrix at an issue price of AU$0.11 a piece in return for an interest of 9.99% stake in the company.
VR8 has also agreed to provide exclusive rights to Matrix for four months from the date of agreement to enter into a negotiation and offtake rights for the supply of around 40% of vanadium products produced for 10 years from Phase 1 of the project.
Productive discussions are underway between the parties regarding finalising a formal offtake agreement for VR8’s products.
To know more, read here
Progress made at Steelpoortdrift Vanadium Project
The company conducted an internal assessment of various aspects for the concentration plant and salt roast leach (SRL) plant. The internal review identified multiple minor changes to the equipment selection and initial designs. The company is planning to incorporate these changes as it moves towards FEED to get the project construction ready.
During the June quarter, VR8 progressed with water permit processes and environmental authorisation for the concentrator and SRL site.
Meanwhile, the company continues to receive strong interest from various parties for financing and offtake.