Surefire Resources (ASX: SRN) jumps on MOU with Saudi firm for Victory Bore Project - Kalkine Media

Highlights

• A Memorandum of Understanding (MOU) has been signed with Ajlan & Bros Mining and Metals Company.
• SRN and Ajlan would discuss binding agreements concerning joint venture for developing Victory Bore Vanadium Project in Australia and advancing a mineral processing facility in Saudi Arabia.
• The agreement also provides a framework for investment in the project by Ajlan.

Surefire Resources NL (ASX: SRN) has entered into a non-binding Memorandum of Understanding (MOU) with Ajlan & Bros Mining and Metals Company for further development of its Victory Bore Vanadium Project.

The MOU was inked on 10 January 2024 at a formal event at the Future Minerals Forum in the Kingdom of Saudi Arabia (KSA).

Saudi Arabian firm Ajlan is a subsidiary company of Ajlan & Bros Holding, which is a highly regarded and prestigious firm with leading development, manufacturing, processing and mining capabilities in the KSA and globally.

Details of MOU

The MOU establishes a structure for the involved parties to discuss and finalise binding agreements for –

• Creating a joint venture for developing the project in Australia and mineral processing for magnetite concentrate from the project in Saudi Arabia. While the joint venture agreement would highlight the obligation of the parties in a detailed manner, it is expected that SRN would handle the Australian part and Ajlan would take care of the Saudi Arabian element.
• Investment by Ajlan in the project.

The involved parties would discuss agreeing terms and execute binding agreements associated with the joint venture and investment by July 2024, informed SRN. By July 2024, the terms of MOU would expire.

This MOU aligns with SRN’s strategic business plan. The partnership with Saudi Arabian organisation would assist in advancing a viable development pathway for the project and capitalise on the incentives available in KSA for resource projects.

KSA is a low power and utilities cost jurisdiction, which offers the company substantial operating cost advantages. Moreover, KSA offers considerable funding incentives such as maximum 75% of capital expenditure are available for mineral processing projects.

The latest development follows the MOU inked between SRN and the Ministry of Investment Saudi Arabia in 2023. The company also released encouraging Pre-Feasibility Study (PFS) results.

To know more about the MOU with the Ministry of Investment Saudi Arabia, click here.

The company plans to produce around 1.25 million tonnes of vanadium-titanium magnetite concentrate annually from the Victory Bore Project. The plan is to produce maximum six products from the concentrate produced at a processing facility in KSA.

Shares trade higher

SRN shares traded at AU$0.009 apiece, up over 5.5%, at the time of writing on 15 January 2024.