We are seeking expressions of interest from potential Strategic Investors and/or Offtakers to provide an equity investment of US$5M to assist with funding the completion of a Definitive Feasibility Study (“DFS”) for the Project. Its world class “Steelpoortdrift Vandium Project” (“SPD” or the “Project”) – vanadium is a key ingredient for lightweight alloys for the aerospace industry and energy storage.
Key investment highlights:
- World Class – one of the world’s largest and highest grade vanadium deposits. JORC Resource of 662 Mt at 0.77% V2O5 (incl., 188 Mt at 1.23% V2O5).
- Long life and high grade – long life open pit mining generates high grade Vanadium concentrate of 2.2% V2O5 post beneficiation with low silica and alumina, which will facilitate the production of +98% V2O5 flake using a conventional Salt Roast Leach (“SRL”) process.
- The Bushveld Complex – within the famous Bushveld Complex, home to some of the richest mineral deposits in the world.
- Contained metal – the mineral resource contains 5,214,000 tonnes of V2O5 based on an average 36.85% in situ magnetite content and using an in-situ 0.45% V2O5 cut-off grade.
- Infrastructure – close to existing underutilized processing plants, power and water nearby with proven road & rail options to port.
- Scoping Study – the Project generated a pre-tax NPV8% of between US$359M and US$401M based on a Vanadium price of US$6.95/lb, Capex of US$161.5M to US$187.9M and average unit cash operating costs of US$3.07/lb to US$3.37/b.
- PFS – work on the PFS has identified the potential to mine higher grades during the first 5 years operation, which has the potential to improve NPV and will form part of the focus for the PFS (anticipated completion May 2021)
- License Granted – one of few vanadium resources globally with a mining right granted, which includes environmental approval.
- ESG Processing Technology – the Company has acquired an interest in an ESG integrated extraction processing, refining and manufacturing technology developed by TCM Research (“TCM”). The processing is carbon-efficient and has hydrogen and power generating proficiencies that envisages zero CO2 emissions, re-utilisation of energy and a significant reduction in the emission footprint for VR8’s existing salt roast process.
We welcome expressions of interest in the form of an indicative / high level terms sheet outlining the level of equity investment, key terms, conditions and due diligence requirements. Shortlisted Strategic Investors and/or Offtaker will be granted access to the latest financial and data room, with a view to developing a binding terms sheet for the proposed investment. Expressions of interest to be provided by 30th June 2021.
Please feel free to contact either Jurie Wessels (Chairman, VR8) on +27 83 212 6669 or myself (Non-Executive Director, VR8) on +61 412 589 418 if you have any questions.
Vanadium Resources Limited
Mr. John
Country/Region:Australia
Telephone:61-4-0892 2852
Mobilephone:61 412 589 418
Email:john.ciganek@outlook.com