Vanadium Resources (ASX: VR8, DAX: TR3) increases ownership interest in Steelpoortdrift to 86.49%

Highlights

• VR8’s ownership interest in Steelpoortdrift has increased to 86.49% following the execution of transaction with Math-Pin for 100% interest in VanRes.
• Consideration for the transaction includes a cash payment of ZAR 2,930 and share options of over 8.09 million, which will convert to 8.09 million VR8 ordinary shares.
• The shares issued are subject to a voluntary 12 month escrow and block trade arrangement to be managed by VR8.
• The latest development has boosted the company’s attributable project NPV to AU$1.62 billion.

Vanadium Resources Ltd (ASX: VR8, DAX: TR3) has increased its interest in the Steelpoortdrift Vanadium Project, South Africa, by 4.59% to 86.49%. The latest development follows the execution of a sale and option agreement with Math-Pin (Pty) Ltd after the satisfaction of conditions precedent.

Under the terms of the agreement, VR8 has acquired a 4.59% stake held by Math-Pin in Vanadium Resource (Pty) Ltd (VanRes) for a cash consideration of ZAR 2,930 and over 8.09 million share options to buy VR8 shares (which convert to 8.09 million VR8 ordinary shares), which on exercise, will represent 1.48% of VR8 share capital.

With this development, the company’s attributable post tax NAV_7.5%, as per the project definitive feasibility study (DFS), has increased to USD 1.05 billion (A$1.62 billion).

More on the agreement

On 3 May 2023, the company announced that it inked a sale and option agreement with Math-Pin to acquire 100% interest held by Math-Pin in VanRes.

The agreement was subject to multiple conditions precedent. The transaction proceeded after getting thumbs up from the South African Reserve Bank and obtaining legal advice on the minimum ownership position of VanRes.

Data source: Company update

VR8’s attributable project NPV improves

A DFS by VR8 highlighted that Steelpoortdrift is a world-class deposit with strong economics over an initial mine life of 25 years, IRR of 42% and 100% ownership post-tax NPV_7.5% of US$1.2 billion.  

Now, with the increase in ownership to 86.49%, VR8’s attributable NPV_7.5% reaches US$1.05 billion (A$1.62 billion).

VR8 shares traded at AU$0.042 apiece on 17 November 2023.