Vanadium Resources Limited (ASX: VR8; DAX: TR3) ('VR8' or 'the Company') is pleased to provide the following market update on the advancement of its world-class Steelpoortdrift Vanadium Project ('Steelpoortdrift' or the 'Project'), including ongoing DSO offtake discussions and activities for operational readiness.
Commenting on 'DSO and Operational Readiness Update', Mr Jurie Wessels, Executive Chairman of VR8, said: 'While discussions with CPAL remain ongoing, we have received significant solicited and unsolicited interest from multiple credible third parties out of China, Japan and Europe for our planned DSO product. Based on current indications, the pricing and terms offered by these parties appear superior to those presently under discussion with CPAL. As a Board and management team who is dedicated and highly incentivised for maximising shareholder returns, we are compelled to explore these competing proposals to ensure a potential Steelpoortdrift DSO operation delivers the strongest possible outcome. In parallel, we continue to progress the steps required for operational readiness, which will allow us to execute our envisaged DSO operation. In alignment with our ongoing strategic equity and offtake process, we are also continuing to advance complementary opportunities that could unlock near-term concentrate production and open pathways to downstream opportunities. I look forward to updating shareholders further as we continue our advancement towards potential near-term production.'
DSO OFFTAKE
As previously announced1 , VR8 commenced operational readiness activities for DSO mining at the Project in anticipation of finalising an offtake agreement with China Precious Asia Limited ('CPAL'). As previously announced, following ongoing discussions and reciprocal site visits, the deadline for finalising pricing arrangements with CPAL was extended to the end of September via an addendum2 to the existing magnetite ore supply agreement3 . Since the execution of the addendum with CPAL, VR8 has received multiple solicited and unsolicited approaches from trading houses and end-users regarding offtake of DSO product from the Project. Although discussions remain preliminary, the Company believes there is strong potential for competing proposals (and ultimately, binding terms inclusive of pricing) that may potentially be materially more favourable than the current pricing terms under discussion with CPAL. To maximise value for VR8 shareholders and to align the Company with strategic long-term partners, the Board has determined it appropriate to advance all relevant discussions. This decision has been taken to ensure a potential DSO operation at the Project suitably reflects the attractiveness of the Project's ore, operational readiness, infrastructure and jurisdictional advantages. VR8 will therefore continue negotiations with CPAL while also considering alternative competing proposals.
In preparation for near-term DSO operations, VR8 is continuing the required workstreams necessary to achieve operational readiness. As previously announced4 , in alignment with the Conditions Precedent with CPAL, the Company has explored pricing with several mining contractors which the Company considers to be capable of executing the envisaged DSO operation. An appropriate mining contractor has been identified. The scope of works and mining and processing methodology have provisionally been agreed with pricing, contract terms and exclusions in the process of being finalised. The preferred contractor holds extensive experience in South Africa and is currently active in the Eastern Bushveld Complex. Final negotiations towards appointment are advancing (subject to the conclusion of offtake arrangements). A scope of works has been provided to the preferred mining contractors to enable pricing of the DSO material. In parallel, the Company has appointed Jan Frederick ('Jacques') Viljoen, a highly experienced local mining engineer, as Chief Operating Officer and Technical Manager of Vanadium Resources (Pty) Limited ('VanRes'), for the Steelpoortdrift Mine. Mr. Viljoen will oversee the execution of DSO operations, including product control and ensuring specifications are met under any potentially executed offtake agreements.
Mr Viljoen's expertise spans strategic leadership, project management, operational execution and stakeholder engagement across Africa in various commodities, including coal, copper, gold, lithium and phosphate. He held senior roles such as General Manager, Operations Manager, Managing Director and Mine Manager, with a proven track record in greenfield and brownfield projects, regulatory compliance, cost control and team leadership. Mr Viljoen's most recent appointment was as General Manager at SA Lithium where he led the launch and commissioning of a large-scale lithium mine, focusing on process design, regulatory compliance, and operational optimization. As previously announced5 , all key approvals required for operations, including the Mining Right, Integrated Environmental Authorisation and Water Use Licence remain in place, giving VR8 the opportunity to move towards near-term production. Key operational authorities (such as blasting permissions, appointment of prescribed health and safety personnel and other regulatory requirements) are in the process of being applied for pursuant to project readiness initiatives. Outstanding matters, including lease agreements with local communities and land rezoning, continue to be addressed. The planned surface infrastructure set out in the DFS, including haul roads, overburden storage facilities, Run-of-Mine treatment areas and pollution control dams have been utilised in project readiness schedules and scope of works, which negate the need to amend existing mining and Environmental Authorizations.
These initiatives continue to be pursued in parallel and are not considered mutually exclusive with one another. Tangible progress remains across all three areas with a variety of discussions continuing to be advanced. While negotiations remain at either a non-binding or ongoing stage, the scale and visibility of opportunities within VR8's pipeline give the Company confidence to continue the prioritisation of near-term cashflow initiatives as part of its strategic equity and offtake process.
Contact:
Jurie H. Wessels
Executive Chairman
VANADIUM RESOURCES LIMITED
Email: contact@vr8.global
Erik Bergseng CFA
Investor Relations
Tel: (612) 8350 0882
Email: ebergseng@nrinvestor.com.au
John Ciganek
Managing Director and Chief Executive Officer
VANADIUM RESOURCES LIMITED
Email: contact@vr8.global
Disclaimer
Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which VR8 operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside VR8's control. VR8 does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of VR8, its directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement. This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by VR8. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.
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