Vanadium Resources Limited (ASX: $VR8) signs significant off-take MOU

Vanadium Resources Limited (ASX: $VR8) has entered into a Memorandum of Understanding (MOU) with Panjin Hexiang New Materials Technology Co., Ltd. ('Hexiang'), one of China's largest vanadium nitride producers. The MOU outlines the purchase of 4,000 tonnes per annum of vanadium pentoxide (V2O5) for an initial 5-year term, representing approximately 37% of VR8's planned V205 production in Phase 1. VR8 is also in discussions for further offtake MOUs and agreements with Chinese, Japanese, Korean, and European end-users and traders for the balance of its planned production in Phase 1.

Executive Commentary on the MOU

Through this strategic MOU, VR8 has provided additional evidence in support of our progress in the project debt and equity markets. VR8 is attracted to Hexiang's processes to take vanadium pentoxide and produce vanadium-nitrogen alloys for use in the steel industry which forms the majority of the vanadium market. VR8 retains production capacity to explore offtakes in other locations or into the vanadium redox flow battery ('VRFB') market. Hexiang recognises the strategic value of the Steelpoortdrift and Tweefontein Vanadium Project based on its size, low CAPEX, lowest quartile OPEX, location, access to infrastructure and advanced stage of development. We are very much looking forward to converting the MOU into an Offtake agreement.

Summary of the Off-take MOU and Future Outlook

The off-take MOU with Hexiang marks a significant milestone for Vanadium Resources Limited, showcasing its ability to secure partnerships with major players in the vanadium industry. The agreement not only underlines the continued demand for vanadium products in the mainland China market but also provides a framework for further negotiations in relation to price, product quality, and other offtake parameters. With ongoing discussions for additional offtake MOUs and agreements, VR8 aims to solidify its position in the global vanadium market. The company's ambitions to explore offtakes in other locations and the VRFB market demonstrate its commitment to diversifying its revenue streams and maximizing the potential of its vanadium production capacity. As VR8 progresses towards converting the MOU into a formal Offtake agreement, the company is poised to capitalize on the growing demand for vanadium products, positioning itself for sustained growth and success in the industry.