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Highlights
- VR8 increased its project interest in VanRes to 86.49% after finalising transactions with Obeec and Math-Pin (as a result this increased VR8’s attributable Post Tax NPV5% to AU$1.62 billion).
- FEED at Steelpoortdrift progresses, detailed plants designing is underway.
- Planned project delivery is anticipated to include several engineering, procurement, and construction contracts over the key elements of the project.
- Environmental and water applications are progressing well, with applications in the final stages.
- For construction funding, negotiations are underway with potential debt and equity financers.
ASX-listed mineral exploration company, Vanadium Resources Limited (ASX: VR8, DAX: TR3) increased its project interest in Vanadium Resources (Pty) Ltd (VanRes) to 86.49% during the three-months ended 31 December 2023.
Moreover, during the quarter, the company made significant progress to make its Steelpoortdrift Vanadium Project construction ready.
Interest increased in VanRes
In May 2023, the company informed about the two different sale and option contracts to acquire interests in the issued share capital of VanRes (the entity which owns 100% of the Steelpoortdrift project), held by Obeec (Pty) Ltd and Math-Pin (Pty) Ltd. During the December quarter, the transaction was concluded, following which the project interest of VR8 in VanRes increased to 86.49% from 73.95%. Remaining 13.51% interest is held by the Steelpoortdrift Development Trust.
With this development, the attributable Post Tax NPV7.5% of the company has increased to AU$1.62 billion. More.
Developments across Steelpoortdrift Vanadium Project
During the latest quarter, the company advanced front-end engineering design (FEED) work at the project, working with engineering companies for the Concentrator and SRL plants to make it construction ready. VR8 has made substantial progress with the detailed design of the plants and has developed a site map for both plants. After FEED, VR8 will move towards preparation of tenders for each specific plant/equipment. Once completed, these tenders will be sent to pre-identified suppliers.
Early discussions were undertaken by the company during the quarter with multiple prospective project management groups and few key engineering firms and equipment manufacturers to prepare for coming tender process.
The company intends to include Engineering, Procurement and Construction (EPC) contracts across the project to ensure that the engineering firm and equipment manufacturer has the desired expertise, and ability to provide liquidated damages and performance guarantees for that portion of the plant.
Water Use Licence applications progress
The integrated Water Use Licence Applications for both sites advanced significantly, as they moved to the last phase of the process with the Department of Water and Sanitation (DWS). During the latest quarter, the company had updated the water usage requirement in line with the updated plant designs.
Before the final submission to the DWS, the applications have advanced to the consulting and review process.
In the December quarter, the company indulged in the discussions and negotiations with potential offtake parties in Europe and North America after receiving several indicative term sheets and expression of interest from them. The discussions were undertaken with the intent to secure agency or offtake agreements, along with strategic equity investment. Moreover, negotiations continue with potential equity and debt financiers for construction funding.
VR8 shares traded at AU$0.035 apiece at the time of writing on 15 February 2024.