TWO YEAR MAGNETITE DSO OFFTAKE
NON BINDING MOU SIGNED, ADVANCING STRATEGY FOR NEAR-TERM PRODUCTION AND EARLY CASHFLOW
HIGHLIGHTS
◆ A Non Binding agreement has been reached between China Precious Asia Limited and VR8’s subsidiary, Vanadium Resources (Pty) Limited for the supply of vanadium-rich magnetite Direct Shipping Ore from VR8’s world-class Steelpoortdrift Vanadium Project
◆ VR8 is advancing this opportunity to unlock early revenues and operating cashflows in support of its staged development and funding strategy for Steelpoortdrift.
◆ The initiative has been made possible due to the suite of valuable minerals within the Steelpoortdrift orebody and VanRes holding a fully permitted Mining Right over the Steelpoortdrift 365KT farm.
◆ Under the terms of the Memorandum of Understanding, VanRes would supply CPAL with an average of 100,000 metric tons of magnetite ore per month.
◆ The arrangement positions VR8 to become a near-term producer by monetising its substantial JORC resource base (+180 years), while retaining full flexibility to scale into full development as vanadium market conditions improve.
◆ Founded in 2012, CPAL is a metals and minerals trader and processor of magnetite-bearing ore, targeting Asian steel markets. CPAL’s focus on vanadium rich magnetite ore aligns with China’s broader push to secure primary sources of vanadium.
◆ As part of its ongoing strategic equity and offtake process, VR8 also continues to assess additional near-term, value-accretive opportunities, such as profit share agreements with existing operations, that complement the development of Steelpoortdrift and are not mutually exclusive to DSO operations.