- Vanadium Resources appoints Foster Stockbroking Pty Ltd. as a corporate advisor.
- Foster Stockbroking specialises in providing access to equity capital markets for emerging companies.
- VR8 expects better exposure and elevated visibility in capital markets by appointing the corporate advisor.
To broaden its reach among investors, Vanadium Resources Limited (ASX:VR8) has appointed Foster Stockbroking Pty Ltd (FSB) as a corporate advisor to the Company. FSB, in its current role, will handle all capital market requirements for VR8 and identify strategic opportunities for value creation.
VR8, currently, is progressing on the Definitive Feasibility Study (DFS) on its flagship Steelpoortdrift Project. The project lies in Tier 1 mining district in Limpopo, South Africa. DFS is being carried out with an objective to undertake mining operations and to construct a concentrator and salt roast plant. The aim of the study is to produce high-purity 12,500tpa of V2O5 flake at a CAPEX of US$200 million.
Why did VR8 choose Foster Stockbroking Pty Ltd for the corporate advisor’s role?
FSB has considerable experience of nearly three decades in raising capital and providing advisory services to emerging companies. It also provides its institutional client base with access to high-quality research products.
FSB was established by Stuart Foster and currently has a presence in Sydney, Perth and Auckland (New Zealand). In the calendar year 2021, FSB successfully raised more than AU$500 million in capital in over 26 transactions in natural resources and other sectors.
Mr Jurie Wessels, Executive Chairman of VR8, commented:
Data source: Company update, 2 February 2022
FSB will provide a range of corporate advisory services to VR8 in relation to the capital market. These will include:
- FSB will secure institutional engagement from key jurisdictions of Australia, the United Kingdom and Asia.
- FSB will introduce VR8 to key relationships in consideration of a dual listing of the Company in the U.K.’s exchange.
- Identifying additional opportunities for VR8 in order to create values.
Related read: Is VR8 a potential Tier 1 Vanadium producer?
In lieu of its services, FSB will charge a bi-monthly retainer of AU$13,000, inclusive of all GSTs. The payment term is for initial six months of the engagement.
Apart from the cash payment, VR8 will also issue five million unlisted Performance Advisory Options at a strike price of AU$0.10 and with an expiry of two years following the issue. The option is conditional and subject to VR8’s share price that reached AU$0.15 on a 15-day VWAP in the first nine months.
VR8 shares closed at AU$0.078, with a market cap of AU$37.13 million as of 2 February 2022.