Highlights

• SRN has signed a Heads of Agreement (HOA) with ASX-listed DRA Global Ltd (DRA) for engineering services on the Victory Bore Project.
• DRA brings extensive experience in mineral processing, including operations in Australia and the Kingdom of Saudi Arabia (KSA).
• The partnership will support SRN from feasibility through to construction and operation of its Victory Bore Project.
• SRN and DRA will collaborate to advance both downstream and upstream processing for the project.
• SRN shares rose over 8% to AU$0.006 as of 26 August 2024.

Surefire Resources (ASX:SRN) has signed a Heads of Agreement (HOA) with DRA Global Ltd. (DRA) for a comprehensive engineering services package to support the development of its Victory Bore iron-vanadium-titanium project in Western Australia. This strategic partnership provides Surefire with access to DRA, a Tier 1 international engineering, project delivery and operations management firm, which will oversee the project from feasibility through to construction and operation.

Services under the agreement

DRA is a multi-disciplinary firm with a focus on the metals, minerals and mining sectors. The company has a proven track record across various commodities and extensive experience in global mining operations and minerals processing, including in Saudi Arabia and Australia.  

DRA's services extend beyond traditional mining solutions to include non-process infrastructure such as water and energy solutions.

Under the agreement, DRA will provide the following services to Surefire-

Data source: Company update

Strategic Collaboration

The collaboration aims to advance SRN’s upstream and downstream processing capabilities. This partnership will provide the company with a clear development pathway towards operational readiness for its flagship project and strong support in its discussions with stakeholders in Saudi Arabia and Europe.

Additionally, DRA will assist with project development, delivery and finance discussions.

SRN’s strategy for Victory Bore Project

SRN's development strategy for its Victory Bore project is centred on establishing a low capital cost operation in Australia. The focus is on enhancing downstream processing to deliver high-value products in a low energy cost  environment.

In December 2023, the company released highly encouraging pre-feasibility study results, showing a US$1.1 billion NPV_10%, a 42% IRR, and a payback period of 2.4 years over a 24-year mine life.

The company is actively pursuing an international process for securing funds and offtake agreements for the project delivery. The discussions are progressing in Saudi Arabia, the Middle East, and Europe.

SRN shares trade higher

SRN shares were trading at AU$0.006 apiece at the time of writing on 26 August 2024, up more than 8% from the last close.