Surefire Resources NL (ASX:SRN) has received a formal expression of interest (EoI) from leading German commodities trading group HMS Bergbau AG for vanadium and titanium products from the wholly-owned Victory Bore Project in WA.
The German commodities trading group specialises in global marketing and logistics of raw materials, dry bulk and critical minerals.
HMS has an established presence in Europe, Africa, Asia and the Middle East as well as strong relationships with major funding groups.
“We are looking forward to explore this opportunity for sourcing strategic minerals for the EU and in particular the German industry in cooperation with Surefire Resources,” HMS Bergbau CEO Denis Schwindt said.
“With ore originating from Australia, we may be able to assist Europe in diversifying its sourcing portfolio.”
The EoI also includes scope to explore a long-term strategic resource partnership – SRN is in discussions with HMS to provide a reliable and strategic supply of vanadium and other metal products to Germany and Europe.
Direct synergies in Middle East
“We welcome the approach from HMS Bergbau CEO Dennis Schwindt as we continue to develop our flagship Victory Bore critical minerals project,” Surefire Resources managing director Paul Burton said.
“There are clearly direct synergies with their presence in the Middle East and our plans for processing in Saudi Arabia.
“In addition, their relationship with KfW Ipex we expect will open funding discussions as we move the project forward.
“The management team at Surefire looks forward to working with HMS to support the development of the Victory Bore project.”
Surefire listed on the Frankfurt stock exchange in July 2024 with the aim of establishing interest in the company’s critical minerals project Victory Bore.
In September, Germany launched a €1 billion ($A1.61 billion) Raw Materials Fund to Strengthen Supply Chains. The fund will invest in rat materials and their supply chains in a bid to reduce dependence on critical minerals sourced from China.
Victory Bore has a total mineral resource estimate 464.6 million tonnes at 0.3% vanadium, 5.12% titanium, 17.7% iron, 16.4% aluminium and 36.2% silica.
In December 2023, the company completed a pre-feasibility study (PFS), which highlighted favourable economic outcomes, including a net present value of US$1.1 billion at a 10% discount rate, a 42% internal rate of return, and a 2.4-year payback period over the project’s 24-year mine life.