VR8 Secures Offtake Agreements for Over 100% of Phase 1 Vanadium Production

Vanadium Resources Forges Key Partnerships to Drive South African Project Forward

Vanadium Resources Limited (ASX: VR8) is making significant strides in its vanadium venture with the recent signing of a Memorandum of Understanding (MOU) with Hunan Zhongxin New Materials Technology Co., Ltd. ("Zhongxin"). This strategic move solidifies VR8's position in the global vanadium market, signaling robust demand for its products.

Back of today’s ASX announcement the share surged 14.89% to reach $ 0.054 at 12:55 PM, 14th May 24. 

Zhongxin, renowned for its expertise in vanadium-based high-end alloy material processing, brings to the table a wealth of experience and a strong customer base worldwide. With an annual production capacity of 13,000 tons of vanadium-based high-end alloy materials, Zhongxin's partnership underscores VR8's commitment to meeting the growing demand for vanadium.

The MOU with Zhongxin, similar to agreements with other industry leaders like Panjin Hexiang New Materials Technology Co. Ltd. and Enerflow Technology Co. Ltd, paves the way for the sale of 4,000 tons per annum (tpa) of vanadium pentoxide (V2O5) over an initial 5-year term. This MOU, combined with previous agreements, exceeds the planned production capacity of ~11,000 tpa V2O5 from Phase 1 operations at VR8's Steelpoortdrift Vanadium Project in South Africa.

Commenting on the MOU, Mr. John Ciganek, Chief Executive of VR8, expressed his delight, highlighting the pivotal role of such agreements in securing funding for the Steelpoortdrift Project. He emphasized VR8's commitment to delivering value to shareholders and driving the project towards success.

Source: VR8 ASX announcement

Mr. Jurie Wessels, Executive Chairman of VR8, echoed Mr. Ciganek's sentiments, emphasizing the significance of these agreements in diversifying vanadium demand beyond traditional steel applications. He noted the potential for vanadium in emerging sectors, such as Vanadium Flow Batteries (VFBs) and specialist alloy products.

Source: VR8 ASX announcement

With over 100% of Phase 1 production already covered by off-take agreements, VR8 is well-positioned to capitalize on the growing market demand for vanadium. As discussions with potential offtakers continue, VR8 remains focused on maximizing the value of its Steelpoortdrift Project and driving sustainable growth in the vanadium sector.