Surefire Resources secures second Saudi investment for Victory Bore vanadium project
Surefire Resources (ASX: SRN) has signed an agreement with Saudi Arabia’s RASI Investment Company to invest and participate in the development of Surefire’s wholly-owned Victory Bore vanadium project in Western Australia.
The agreement is believed to be the second of its kind signed with a local company since Surefire entered into discussions with the kingdom last August.
RASI has established a fund specifically for investing in international projects within the mining, manufacturing and laboratory fields, considered key economic growth sectors in the kingdom’s future strategy as it transitions away from a dependence on oil and gas.
The agreement allows for Surefire and RASI to negotiate binding deals relating to investment, co-participation and offtake activities.
Surefire managing director Paul Burton said the securing of RASI’s commitment builds on a plan to engage with Saudi partners in the development of Victory Bore.
“This is another important step for the company in its approach to developing the Victory Bore project,” he said.
“Further announcements will be provided once matters progress with RASI.”
January agreement
The agreement with RASI follows Surefire’s signing of a memorandum of understanding in January with a wholly-owned subsidiary of Saudi company Ajlan & Bros.
Under that deal, Surefire and Ajlan will collaborate on a joint venture structure for the development of Victory Bore in Australia and the development of a mineral processing facility in Saudi Arabia for the processing of magnetite concentrate.
The companies have also established a framework for Ajlan’s investment into Victory Bore, with a view to joint ownership of the project and processing facility.
Saudi Arabia focus
Surefire’s focus on Saudi Arabia falls under its business development plan to have a Saudi partner jointly progress a feasible development pathway and take advantage of local incentives for resource projects.
The connection started in August, when the company secured a vanadium processing deal with the nation’s Ministry of Investment.
Under the terms of that deal, the ministry will provide assistance for the import and processing of Surefire’s mineral concentrates from Victory Bore.
Victory Bore plans
Victory Bore is one of the largest vanadium projects in Western Australia.
Surefire plans to mine and beneficiate the ore to produce a magnetite concentrate for processing in Saudi Arabia to take advantage of the Kingdom’s lower operating and capital costs as well as funding incentives.
The project is expected to output approximately 1.25 million tonnes per annum of high quality vanadium-titanium magnetite concentrate to produce 2580tpa of high purity vanadium, 5760tpa of ferrovanadium, 192,880tpa of titanium slag, 364,480tpa of pig iron, 245,480tpa of high purity iron oxide pigment and 245,480tpa of high-grade iron ore.