Surefire Resources NL (ASX:SRN) has extended a Memorandum of Understanding (MoU) with Saudi Arabian company Ajlan & Bros. Mining and Metals relating to Surefire’s 100%-owned Victory Bore Vanadium Project and downstream processing of the magnetite concentrate in the Kingdom of Saudi Arabia.
Surefire is developing the Victory Bore Project in Western Australia to produce a magnetite concentrate on-site at the mine. The concentrate will then be shipped to Saudi Arabia for processing to produce the high-value products vanadium pentoxide, ferro-vanadium, pig Iron, iron oxide and titanium slag.
The company engaged with both the government of the Kingdom of Saudi Arabia and companies in the country for the development of the downstream value-add processing operation.
Surefire entered the MoU with Ajlan in January 2024, providing a framework for future binding agreements relating to funding downstream processing of magnetite concentrate in Saudi Arabia from the Victory Bore Vanadium Project.
The MoU initially had a six-month term with the provision for extensions to be negotiated. However, during that term progress with the MoU terms was interrupted, with unexpected delays due to the business demands associated with Ajlan’s other mining interests and other matters.
As a result, Surefire and Ajlan agreed to extend the MoU for a further 12 months. Surefire executives plan to spend time in Saudi Arabia to progress discussions with Ajlan, the Australian Ambassador to the country and several other companies in the region that have expressed interest in the project.
Ajlan is a highly respected company in Saudi Arabia, with leading mining, processing, manufacturing and development capabilities both in the country and internationally. It was established to invest in a diversified portfolio of projects across Saudi Arabia’s key economic growth sectors as part of the Kingdom’s VISION 2030.
Work continues
Current work streams involve establishing a detailed commercial structure and plan for marketing of the magnetite concentrate and offtake of the processed final products. Surefire is also progressing logistics and discussions with Mid-West Ports and global development companies for the development and delivery of the project.
Surefire Resources managing director Paul Burton said: ”We are very pleased to extend the term of the MoU with Ajlan. This provides both sides time to establish the detailed and substantive agreements required to move the world-class Victory Bore project forward, particularly with the downstream processing and offtake opportunities in KSA and the region.
“We look forward to our further collaboration and work in KSA leading to binding agreements, while at the same time working hard to secure leading companies with project delivery capability to complement our development plans.”