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- Vanadium Resources (VR8) increased its interest to 73.95 per cent in the Tier 1 Steelpoortdrift Vanadium Project in Limpopo, South Africa
- The company has received approval from the South African Government to receive the transfer of an interest of 23.95 per cent in the project
- The increase in ownership comes at no cost to VR8 as the consideration shares for the purchase of the asset were issued in September 2019
- A definitive feasibility study (DFS) is currently underway at the project
- On market close for the day, VR8 was up 7.69 per cent and is trading at 8.4 cents per share
Vanadium Resources (VR8) has increased its interest to 73.95 per cent in the Tier 1 Steelpoortdrift Vanadium Project in Limpopo, South Africa.
The company has received approval from the South African Government to receive the transfer of an interest of 23.95 per cent in the project.
The increase in ownership comes at no cost to VR8 as the consideration shares for the purchase of the asset were issued in September 2019.
In 2018, the company entered a sale and purchase agreement to buy 73.95 per cent of shares in VanRes, which owns the project.
A year later, the transaction was completed up to the point of VR8 acquiring only 50 per cent of the issued shares in VanRes, thereby not attaining more than 50 per cent and effective control of VanRes and now needed ministerial approval, which has now been awarded.
“The approval by the Minister has now cemented VR8’s control and ownership of the world-class Steelpoortdrift Vanadium Project, making it possible for the company to
confidently prepare the required runway towards securing construction finance and attracting the right mix of financial partners and stakeholders,” Executive Chairman Jurie Wessles said.
A definitive feasibility study (DFS) is currently underway at the project to undertake mining operations and to construct a concentrator and salt roast plant, potentially capable of initially producing 12,500 tonnes per annum of vanadium oxide flake at an estimated capex of US$200 million (A$278 million).
The DFS is expected to be completed by the third quarter of 2022 and will potentially allow the company to raise the requisite construction finances and to commence exploitation and processing operations soon afterwards.
On market close for the day, VR8 was up 7.69 per cent and is trading at 8.4 cents per share.
