Vanadium Resources Limited (ASX:VR8) has received a boost in the proposed development of its Steelpoortdrift Vanadium Project in Africa with the signing of a marketing and investment mandate with global trading house Pelagic Resources Group Ltd.
Pelagic has agreed to introduce the company to its existing customer base in China, Europe, Russia, India and the USA aiming to potentially bring about a transaction whereby end-user capital is strategically deployed in developing Steelpoortdrift and the production of V2O5products.
Pelagic’s experience in trading with participants in the specialty steel industries and its extensive network in the ferrous markets present an opportunity for VR8 to develop strategic partnerships that could advance Steelpoortdrift to its maximum potential,” VR8 Chairman, Jurie Wessels, said.
Working with Pelagic on investigating strategic partnerships may become even more compelling after the Company has received the scoping study results for Steelpoortdrift, which is expected shortly”.
“The world class nature of the Steelpoortdrift deposit through it’s undeniably first-rate grades, its potential for an extended lifespan, outstanding exploitation dynamics and its well developed location, pushes this project to the forefront in possibly becoming an investment destination for one or more of our existing customer relationships.”
Pelagic is an established global physical commodity merchant, headquartered in Singapore with offices in South Africa, Zimbabwe and China with a core focus on metal ores used in the stainless and speciality steel industries.
The company was founded in 2016 and has since marketed over million tonnes of metal concentrates to China, Europe, Russia, India and the USA. Pelagic currently works strategically with a number of large International Physical Commodity Merchants, Chinese State Owned Enterprises and Global Asset Allocators, and is well positioned to strategically align development capital with resource projects in Africa.
The Steelpoortdrift titaniferous magnetite deposit is located in the prolific Bushveld Geological Complex surrounded by known mineral and vanadium production facilities within reach of proven processing plants, railway and road options and ports.
The Steelpoortdrift Vanadium project is licensed with a mining right and the Company is in the process of conducting work towards becoming fully permitted (such as acquiring a water use license) for production and towards studies to verify a pathway of options to produce high purity V2O5flake and other niche products from the suite of elements present in the Titano-magnetite (V, Ti and Fe). The current Scoping Study aims to demonstrate the viability of producing high purity V2O5flake from the Project.