ASX-listed Vanadium Resources (VR8) has increased its interest in the Steelpoortdrift vanadium project, in South Africa’s Limpopo province to 86.49%.
This follows the acquisition of a 5.49% interest in VR8 subsidiary VanRes from black economic empowerment firm Math-Pin in a cash and share deal.
Vanadium Resources in May entered into sale and option agreements with Math-Pin and another shareholder Obeec to acquire sole ownership of VanRes, which holds the Steelpoortdrift project.
Steelpoortdrift is one of VR8’s flagship projects, with the other being the Tweefontein processing project.
An October 2022 definitive feasibility study demonstrated the robust economics of the Steelpoortdrift project, which has a mine life of about 25 years. The project is estimated to have a post-tax net present value of $1.2-billion, and internal rate of return of 42% and a 27-month payback on pre-production capital expenditure of $211-million.
“We are very pleased to have completed the transaction with Math-Pin and welcome their transition from a private shareholder in VanRes to a shareholder of VR8. As a shareholder of VR8, Math-Pin will still be able to contribute to the future capital requirements of the project, while sharing in VR8’s success from the project and any future endeavours.
“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 align with the regulatory environment of the South African government,” says VR8 chairperson Jurie Wessels.