PERTH (miningweekly.com) – ASX-listed Vanadium Resources has completed a A$5.91-million equity placement to Matrix Resources, a subsidiary of Zhejiang Lygend Investment CO, giving that company a 9.99% interest in Vanadium Resources.
Vanadium Resources at the start of May announced the subscription agreement, while also granting Matrix exclusivity to negotiate and enter into an offtake agreement for the vanadium products produced from the Steelpoortdrift vanadium mine and concentrator, and the Tweefontein vanadium salt roast leach plant, in South Africa.
Under the subscription agreement, Vanadium Resources will issue more than 53.7-million shares in the company at a price of 11c each.
“With the satisfaction of the conditions precedent and the settlement of the placement imminent, I am delighted to welcome Matrix as a shareholder of VR8 and look forward to continuing to work together to finalise a formal offtake agreement for our vanadium products,” said executive chairperson Jurie Wessels.
“We are very much looking forward to investigating the potential ways to work together with Matrix to advance the development of the Steelpoortdrift Vanadium project into a mutually beneficial relationship aimed at progressing the project towards final investment decision (FID).
“These funds will strengthen the company’s balance sheet and allow for significant progress to be made on concluding critical pathways while we continue to engage with potential financiers and progress towards FID and putting the project into production.”