Highlights

• The Memorandum of Understanding (MoU) with Ajlan has been extended by an additional 12 months.
• The MoU, initially set for six months, was extended due to delays related to Ajlan's business demands.
• SRN is focusing on developing a commercial structure, marketing strategy, and securing offtake agreements for the processed products.
• Ongoing discussions with Mid-West Ports and global companies are aimed at ensuring the project’s development and delivery.

Surefire Resources NL (ASX:SRN) has provided an update on the MoU signed with Saudi Arabian company Ajlan & Bros. Mining and Metals in January 2024. The MoU, related to the Victory Bore Vanadium Project and downstream processing of magnetite concentrate in the Kingdom of Saudi Arabia (KSA), has been extended for an additional 12 months.

Background of the MoU

The Victory Bore Project is being developed to produce magnetite concentrate on-site at the Victore Bore mine, which will then be shipped to the KSA for further processing into high-value products such as vanadium pentoxide, ferro-vanadium, pig iron, iron oxide, and titanium slag.

The company has strategically engaged with the KSA government and select regional companies to advance downstream value-add processing operations. The MoU with Ajlan outlined a framework for future binding agreements to fund the downstream processing of magnetite concentrate from the Victory Bore project in the KSA.

Initially set for six months with a provision for extension, the MoU experienced unexpected delays due to Ajlan's business demands and other matters. Recent discussions between the parties have resulted in a 12-month extension. During this period, SRN executives will engage with Ajlan and other interested regional companies to advance the project.

Surefire is focusing on establishing a comprehensive commercial structure, marketing strategy for the magnetite concentrate, and securing offtake agreements for the final processed products. Additionally, the company is progressing logistics discussions with Mid-West Ports and collaborating with global development companies to ensure the development and delivery of the project.

SRN shares were trading at AU$0.006 apiece at the time of writing on 20 August 2024.