ASX-listed Vanadium Resources (VR8) has entered into a A$4.6-million subscription agreement with South African construction and mining services company Raubex, which will inject the investment for development of a vanadium project.
In return for the investment premium, VR8 associate company Vanadium Resources Pty, which owns the Steelpoortdrift vanadium project in Mpumalanga, South Africa, has entered into an arms-length mining services agreement with Raubex’s wholly-owned contract mining subsidiary SPH Kundalila.
SPH will provide contract mining services including drilling, blasting, haulage, stockpile management, backfilling and supply of equipment to conduct relevant activities.
VR8 chairperson Jurie Wessels says the company welcomes Raubex to the team of shareholders that plan to build Steelpoortdrift into possibly the largest vanadium mine in the world.
Raubex group commercial executive Robert Shedlock notes the company is always on the look-out for opportunities where it can add value and receive a return on investment.
“We have the balance sheet and capacity to be a valued part of the team to possibly build Steelpoortdrift into a notable resource enterprise.”
Wessels adds that the positive financial metrics from the project’s prefeasibility study, coupled with an untouched large high-grade resource, have attracted significant attention from industry participants.
VR8 is now in a position to complete a feasibility study and progress other due diligence towards a final investment decision.
The current mineral resource stands at 612-million tonnes grading 0.78% vanadium oxide in the indicated and inferred categories.