Vanadium Resources (ASX:VR8) Locks In $4.6M Investment For Steelpoortdrift Project

Shares in Vanadium Resources (VR8) have spiked in early action after the company locked in a $4.6 million investment at an impressive premium to its last closing price.
The company told investors this morning it is set to place some 44.2 million shares to Johannesburg Stock Exchange (JSE)-listed mining services company Raubex Group at 10.4 cents each.
This price represents a premium of 55 per cent to VR8’s 15-day volume-weighted average share price of 6.7 cents and a 64 per cent premium to the company’s 30-day volume-weighted average price of 6.3 cents.
Vanadium shares last traded at 7 cents each before today’s investment was announced.
In return for the $4.6 million investment, Vanadium Resource has signed a mining services deal with a Raubex subsidiary, SPH Kundalila, over the VR8 Steelpoortdrift Vanadium Project in South Africa.
Under the deal, SPH will provide drilling, blasting, haulage, equipment supply, and other services to the Steelpoortdrift project.
Importantly, Vanadium Resources said following the investment, it is now fully funded through to a definitive feasibility study (DFS) for Steelpoortdrift and up to final investment decision.
Vanadium Resources Chair Jurie Wessels said the company was “very pleased” to have received an investment from a company of Raubex’s calibre.
“Combined with the attractive financial metrics from the project pre-feasibility study, the untouched large high-grade resource at Steelpoortdrift has attracted significant attention from industry participants,” Mr Wessels said.
“This created strong support for the company to close its first strategic investment with a business that understands mining in South Africa and provided VR8 with both the capital it requires to complete the feasibility study and the confidence to embark on a process to prepare itself for the eventuality of a final investment decision.”
Raubex Group Commercial Executive Robert Shedlock spoke highly of VR8, saying the Steelpoortdrift project was a “world-class” asset.
“We are always on the lookout for opportunities where we can add value and receive a significant return from our investment,” Mr Shedlock said.
“We have the balance sheet and capacity to be a valued part of the team to possibly build Steelpoortdrift into a notable resource enterprise.”
He said the company was happy to pay the premium investment price in return for the mining services contract.
Along with the Steelpoortdrift project, Vanadium also owns the Quartz Bore Project in Western Australia’s Pilbara region.
Shares in Vanadium resources were up 27.1 per cent and trading at 8.6 cents each at 1:55 pm AEDT. The company has a $35.6 million market cap.