Sir Mick Davis’ Vision Blue Resources has made a further investment of $7-million in LSE-listed vanadium mining and processing company Ferro Alloy Resources (FAR).
This brings Vision Blue’s total investment in FAR, which owns the Balasausqandiq asset in Kazakhstan, to $10.1-million.
The latest investment comes on an accelerated timetable to enable the expansion of the feasibility study, as well as improvements on site to the existing operations.
Davis said he was “increasingly convinced” of the Balasausqandiq vanadium deposit’s potential to be a world-leading asset.
“The FAR and Vision Blue teams have worked closely together over recent weeks to enhance the feasibility study for the vanadium asset,” he stated.
The expanded scope of the feasibility study would consider a Phase 2 expansion to four-million tonnes a year of ore treated and evaluate the value of byproducts that could be extracted.
“Accelerating the $7-million tranche of investment is a vote of confidence in our project by our strategic investor Vision Blue Resources,” commented CEO Nick Brigden.
“With this accelerated investment, the plant improvements we have already made, the improved product prices and at last, good deliveries of raw materials, we are now in a strong position to realise the benefits of the hard work undertaken in the last few years and look forward to the next chapter with confidence.”
FAR gained nearly 10% on the London market on Monday, trading at 35.65p each.