Vanadium Resources increases interest in Steelpoortdrift project, South Africa

• Vanadium Resources (ASX: VR8), the developer of the Tier 1 Steelpoortdrift Vanadium Project in Limpopo, South Africa, announces an increase in its ownership to 86.49 per cent, up from 81.90 per cent
• The agreement includes a sale and option agreement with Math-Pin, disclosed on 3 May 2023, where VR8 acquires Math-Pin’s 4.59 per cent stake in VanRes
• The transaction involves a ZAR 2,930 cash payment and the issuance of 8,092,810 share options for VR8 shares
• Math-Pin commits to a 12-month escrow period and establishes block trade provisions through a Voluntary Restriction Deed with VR8
• VR8 last traded at 4.2 cents

Vanadium Resources (ASX: VR8) the developer of the Tier 1 Steelpoortdrift Vanadium Project in Limpopo, South Africa, has announced that the Company has increased its ownership in Vanadium Resources to 86.49 per cent, up from 81.90 per cent.

The agreement entails the sale and option agreement with Math-Pin disclosed on 3 May 2023, in which VR8 acquired Math-Pin’s 4.59 per cent stake in VanRes, consisting of 293 shares.

The transaction involved a ZAR 2,930 cash payment and the issuance of 8,092,810 share options for VR8 shares. These options will convert into 8,092,810 fully paid VR8 ordinary shares, enhancing VR8’s stake to 1.48 per cent in the expanded share capital.

“VR8’s increased ownership provides the Company with a stronger base to raise the required construction financing and achieve the critical pathways to develop the Project. We are pleased to have now completed transactions that provide significant value to both parties and aligns with the regulatory environment of the South African Government.” VR8 Executive Chairman Mr Jurie Wessels said.

Math-Pin, a “Black Economic Empowerment” (BEE) entity for compliance with South African regulations, entered the Agreement subject to diligent conditions.

The South African Reserve Bank and legal opinions confirmed the alignment of VanRes’s ownership structure, meeting all conditions precedent.

Under the agreement, Math-Pin has committed to a 12 month escrow period and established block trade provisions through a Voluntary Restriction Deed with VR8.

Additionally, in October 2022, the Company achieved an Improved Project Net Present Value (NPV) of US$1.2 billion at 7.5 per cent, validating Steelpoortdrift as a globally significant deposit.

With 86.49 per cent ownership, the attributable NPV at 7.5 per cent has risen to US$1.05 billion (AUD$1.62 billion), underlining the Company’s commitment to value creation.

VR8 last traded at 4.2 cents.