PERTH (miningweekly.com) – Mining contractor Mineral Resources Limited (MRL) and junior miner Atlantic have signed an agreement to work together to buy and operate a vanadium project in Western Australia.

MRL said in a statement that the two companies would acquire, complete construction, commission and operate the Windimura project, which is said to be one of the world’s largest known vanadium deposits.

MRL and Atlantic have agreed with the secured lenders of project holder Midwest Vanadium to acquire a 90% stake in that company, in return for procuring project finance to complete the construction and commissioning of Windimura.

The companies are looking to secure between A$90-million and A$100-million in project finance.

As part of the agreement, MRL would complete the construction and commissioning of the vanadium refinery on a cost-reimbursable basis.

Following the completion of the transaction, Atlantic would hold a 62,5% interest in Midwest Vanadium, while MRL will hold a 27,5% interest.

The existing lenders would gain a 10% interest in the project.

“MRL looks forward to working jointly with Atlantic to bring the project into production in the most cost-effective and expedient manner possible,” said MRL chairperson Peter Wade.

He added that the company had “every confidence” in the Windimurra project and that MRL was optimistic of the value that its successful completion and operation would add for shareholders.

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