Vanadium Resources (ASX: VR8, DAX: TR3): 1H Report Highlights Progress on Steelpoortdrift Project - Kalkine Media

Highlights

• Vanadium Resources made significant strides  with preparation work for construction, focusing on its South African project in the half-year ended 31 December 2023.
• VR8 increased its stake in the Steelpoortdrift Project to 86.49%.
• Discussions are ongoing to secure offtake agreements, strategic investments, and debt financing for project construction.

Vanadium Resources Limited (ASX: VR8, DAX: TR3) is dedicated to advancing its flagship Steelpoortdrift project in South Africa.

The company has its present focus on Front-End Engineering Design activities, developing the project delivery model, progressing regulatory applications, and exploring complete power solutions with various solar power solution providers.

The ASX-listed company has released its half-year report for the six-month period ended 31 December 2023.

During this period, VR8 actively developed the Steelpoortdrift Vanadium Project. It secured increased project ownership, progressed discussions with financiers, and advanced engineering and permitting processes. Social and community engagement efforts are underway, alongside additional project developments such as solar power integration and potential rope conveyor implementation. For in-depth insights, continue reading.

STEELPOORTDRIFT VANADIUM PROJECT

• Increased Ownership: VR8 solidified its ownership of the Steelpoortdrift Vanadium Project by raising its stake in Vanadium Resources (Pty) Ltd to 86.49%, significantly boosting its attributable post-tax NPV_5% to US$1.05 billion.
• Financing Discussions: VR8 reported strong interest from potential offtakers and strategic financiers in North America, Europe, and Asia. Discussions are ongoing to secure debt financing for project construction.
• Engineering & Design: VR8 made significant progress on Front-End Engineering Design (FEED) activities for the concentrator and salt roast leach plants. Detailed site plans have been established, paving the way for issuing tenders to pre-selected suppliers.
• Permitting: The environmental impact assessment and management programs for both project sites were submitted to the relevant authorities after incorporating public feedback. Water Use License applications are in the final stages with the Department of Water and Sanitation.
• Social & Community Engagement: A revised Social and Labour Plan was submitted for government approval. Re-zoning applications were filed with the Municipality to align the project area with planned activities.

ADDITIONAL PROJECT DEVELOPMENT WORKSTREAMS

• Designing a more efficient site access road.
• Exploring potential partnerships for solar power plants near both project sites.
• Collaborating with ESKOM and other groups on comprehensive power solutions.
• Conducting an environmental impact assessment for the proposed rope conveyor route and finalising a pre-feasibility study.

VR8 shares traded at AU$0.036 apiece on 14 March 2024.