Surefire Resources NL (ASX:SRN) has inked a second non-binding Memorandum of Understanding (MoU) with a Saudi Arabian company to explore investment opportunities and participation in the development of its wholly-owned Victory Bore Vanadium Project in Western Australia.
Saudi looking to diversify economy
This agreement with RASI Investment Company comes as part of Surefire's strategic initiative to engage with Saudi Arabian partners and capitalise on that country’s vision to diversify its economy beyond oil and gas.
RASI Investment, which has made its reputation on a knack for high-revenue projects, has established a new fund dedicated to overseas investments, including those in the mining sector.
This aligns with Saudi Arabia's ambitious 'VISION 2030', aimed at transforming the Gulf state into a global mining hub.
The collaboration with RASI follows a prior MoU with Ajlan and Bros. Mining and Metals, and further cements Surefire's position in the region.
This new MoU is expected to leverage RASI's extensive experience in the mining sector and investment capabilities, potentially making RASI a major stakeholder in the project.
The MoU is set to open avenues for binding agreements on investment, co-participation and offtake for Surefire's Victory Bore Project.
One of largest vanadium projects
Surefire's Victory Bore Vanadium Project stands as one of the largest vanadium projects in the region.
The company has plans to mine and beneficiate the ore to produce a magnetite concentrate, which will then be processed in Saudi Arabia. This strategy is expected to benefit from lower operating and capital costs in that country.
Recently, Surefire completed a pre-feasibility study (PFS) for the project, showcasing a robust internal rate of return of 42% based on current commodity prices and utility costs.
Surefire managing director Paul Burton said: “This is another important step for the company in its approach to developing the Victory Bore Project.
“This MoU will be worked through concurrently and further announcements will be provided once matters progress with RASI.
“We look forward to working closely with RASI along with our work with Ajlan.”
RASI chair Meshary AlAli AlDehashi said: “This MoU for investment will contribute to achieving Surefire and RASI’s goals to support and enhance local content by localising some mining services.
“This will help realise the goals of Saudi Vision 2030, which focuses on transforming the Kingdom into a major mining hub.”