Surefire Resources NL has executed a Heads of Agreement (HOA) with German-based HMS Bergbau AG (HMS) for the offtake of all critical mineral products from its 100%-owned Victory Bore Critical Minerals Project. The agreement covers materials to be produced from the proposed mine and beneficiation plant, marking a key step in advancing the project's commercialisation.
HMS is a global specialist in the marketing and logistics of raw materials and critical minerals and operates across Europe, Africa, Asia, and the Middle East. The company's established industry presence and strong relationships with major funding groups align with Surefire’s development plans for Victory Bore.
This agreement builds on an Expression of Interest received from HMS in 2024, as announced on November 20. It also supports Surefire’s ongoing discussions with Saudi Arabian and European stakeholders regarding project funding. The HOA provides a framework for both parties to finalise terms related to product quantities, delivery schedules, and pricing mechanisms, reinforcing the project’s path toward development and commercial viability.
"This agreement is an exciting milestone for the Victory Bore critical minerals project. It represents a vote of confidence in, and an underpinning of, the project as we advance development plans to provide a long-term supply of strategic and critical minerals to a rapidly emerging energy and new technologies market," Surefire Resources managing director Paul Burton said.
Surefire strengthens position in Germany
Surefire has been solidifying its presence in Germany since the establishment of the German-Australian Critical Minerals Alliance in April 2023. The launch of Germany’s €1 billion (A$1.61 billion) Raw Materials Fund in September 2024 reinforces the country’s commitment to securing critical minerals supply chains.
The Raw Materials Fund is managed by the state-owned development bank KfW and is designed to reduce Germany’s reliance on imports from high-risk jurisdictions. KfW, one of the world’s leading resource finance banks, offers a range of financial instruments—including grants, loans, equity, and guarantees—for projects that utilise German-sourced equipment or supply materials to Germany or the European Union (EU).
HMS Bergbau AG, a Berlin-based commodity supplier operating since 1955, has established itself as a key player in international trade and is expanding into commodity production and logistics. The company, which has subsidiaries in Switzerland, Indonesia, Singapore, Africa, the USA, and Dubai, is also the majority shareholder of Maatla Resources (Pty.) Ltd. in Botswana.
HMS Bergbau approached Surefire in November 2024, initiating discussions regarding an offtake agreement. The involvement of a German-based company aligns with the Raw Materials Fund’s requirement for German or EU participation in critical mineral projects.
"We look forward to progressing this opportunity to source strategic minerals for the EU and, in particular, the German industry in cooperation with Surefire Resources. We look forward to working towards the final agreements,” HMS Bergbau CEO Denis Schwindt said.
Victory Bore deposit
The Victory Bore project hosts a JORC-compliant resource of 464 million tonnes (Mt) at 0.3% vanadium pentoxide (V₂O₅), 5.12% titanium dioxide (TiO₂), and 17.7% iron (Fe), including a JORC Probable Ore Reserve of 93.1 Mt at 0.35% V₂O₅, 5.2% TiO₂, and 19.8% Fe.
Exploration to date has covered just the first 1 kilometre (km) of a 20km mineralised strike, positioning Victory Bore as one of the world's largest vanadium deposits.
Grade and quality
Advanced metallurgical test work on a bulk sample from Victory Bore has confirmed:
- Higher grades of key elements in a premium magnetite concentrate.
- Vanadium recovery efficiency, with 99% of the vanadium contained in the magnetite concentrate, enabling high recoveries in downstream processing. This supports the production of high-grade vanadium pentoxide flake, ferro-vanadium, and high-purity vanadium electrolyte—critical products for the European market, particularly Germany.
- Enhanced titanium content, with the non-magnetic fraction showing a substantial increase in titanium dioxide (TiO₂) content to 18.5%, supporting the production of high-grade titanium feedstock.
Development strategy
The Pre-Feasibility Study (PFS) completed in December 2023 demonstrated strong project economics, including:
- Net Present Value (NPV) (10% discount rate): US$1.1 billion
- Internal Rate of Return (IRR): 42%
- Payback period: 2.4 years
- Mine life: 24 years
Surefire’s development strategy focuses on:
- Establishing mining and beneficiation operations at Victory Bore to produce high-grade vanadium concentrate.
- Exporting concentrate to Saudi Arabia for downstream processing in established industrial centres.
- Producing high-value end products, including:
- Vanadium pentoxide (V₂O₅)
- Vanadium electrolyte (VE)
- Ferro-vanadium (FeV)
- Pig iron
- Ferro-titanium
- High-purity iron oxide
This strategy secures a long-term supply of strategic and critical minerals for the Middle East and Europe, reinforcing Surefire’s role in the global critical minerals market and strengthening its position in sustainable resource development.