Vanadium Resources (ASX:VR8) Appoints HCF For Steelpoortdrift Funding
Vanadium Resources (VR8) has appointed global corporate finance group HCF International Advisors to assist with financing the development of the Steelpoortdrift vanadium project in Limpopo, South Africa.
Established in 2003, HCF is leading independent corporate finance advisory boutique based in London, UK with a primary focus on the mining and metals sector and a strong history of securing funding for projects in Africa.
HCF will be engaged in two phases, the first will focus on preparing Vanadium Resources for a formal engagement of interested parties by undertaking a thorough project risk analysis and developing different strategies to accomplish project funding.
The second phase will move towards formally engaging with interested parties, assisting with appointing mandated lead arrangers and managing due diligence processes.
VR8 Executive Chairman Jurie Wessels said the company is making “great strides” in progressing the Steelpoortdrift project closer to production and is ready to move towards project financing.
“With the [definitive] feasibility study nearing completion at the end of September, it is an appropriate time to accelerate our business by taking on the early work towards project financing,” Mr Wessels said.
“Given HCF’s extensive experience with Africa, mining and, specifically, critical minerals projects, we are very pleased to appoint HCF as our financial adviser.
The finance group will receive part of its fees in shares at the company’s election.
The definitive feasibility study is outlining a mining operation and the construction of a concentrator and salt roast plant to potentially produce an initial 12,500 tonnes of vanadium pentoxide flake per annum at an estimated capex of US$200 million (A$290.8 million).
Vanadium said that with the upcoming completion of the DFS and the appointment of HCF, it’s moving closer towards reaching a final investment decision.
Shares in Vanadium Resources were trading steady at 7.3 cents as of 11:23 am AEST.
www.ferroalloynet.com
