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Surefire Resources secures 12-month extension on Saudi partnership for Victory Bore vanadium project

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By Imelda Cotton - 
Surefire Resources ASX SRN Ajlan extension MOU Saudi Arabia
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Surefire Resources (ASX: SRN) and Saudi company Ajlan & Bros Mining and Metals have agreed to extend the term of a memorandum of understanding (MoU) regarding the Victory Bore vanadium project in Western Australia.

The original MoU  – which also covers the downstream processing of magnetite concentrate in the Kingdom of Saudi Arabia (KSA) – was signed in January for an initial six months but encountered unexpected delays due to Ajlan’s other mining interests and business demands on both companies.

It has now been extended for a further 12-month period, during which time Surefire executives will spend time in KSA to progress discussions with Ajlan, the Australian ambassador to KSA and several companies in the region that have expressed interest in the project.

Buying time

Surefire managing director Paul Burton said the company was pleased to have secured the extension.

“This will buy time for both sides to establish the detailed and substantive agreements required to move the world-class Victory Bore project forward, particularly with the downstream processing and offtake opportunities in KSA and the region,” he said.

“We look forward to our further collaboration in KSA leading to binding agreements and we will be working hard to secure leading companies with project delivery capabilities to complement our development plans.”

Flagship project

Surefire is developing the flagship Victory Bore project to produce a magnetite concentrate on-site, which will then be exported to KSA for processing into high-value products including vanadium pentoxide, ferrovanadium, pig iron, iron oxide and titanium slag.

The company has embarked on a strategy to engage with the KSA government for the development of the downstream processing operation, with the MoU providing a framework for future binding agreements relating to funding the venture.

Current work streams involve establishing a detailed commercial structure and plan for marketing the magnetite concentrate and offtake of the processed final products, progressing logistics and discussions with Mid-West Ports Authority in Geraldton and liaising with global development companies for the delivery of the project.