Surefire Resources NL (ASX:SRN) has signed a non-binding memorandum of understanding (MoU) with Ajlan & Bros Mining and Metals Company, a company based in the Kingdom of Saudi Arabia (KSA).
Under the MoU, both parties will collaborate to complete binding agreements in relation to a joint venture structure for the development of Surefire’s Victory Bore Vanadium Project in Western Australia and the development of a mineral processing facility in Saudi Arabia for the processing of magnetite concentrate from the project.
Furthermore, the MoU also establishes a framework for an investment into Victory Bore by Ajlan, with a view to Surefire and Ajlan owning the Victory Bore Project and Saudi Arabian processing facility in a joint venture.
"World-class asset"
Surefire managing director Paul Burton said: “This is another milestone for the company in its approach to develop the Victory Bore Project and follows the outstanding pre-feasibility study results that establish Victory Bore as a world-class asset with a feasible development plan.
"We welcome this agreement with Ajlan, a highly regarded and prestigious company in KSA, and thank the Ministry of Investment for the introduction.
"We look forward to working closely with both to achieve our mutually beneficial development plans.”
Significant operating cost advantages
The Kingdom of Saudi Arabia is a low power and utilities cost jurisdiction providing the company with significant operating cost advantages and has significant funding incentives available of up to 75% of capital expenditure for mineral processing projects.
Ajlan is a highly respected prestigious company in Saudi Arabia with leading mining, processing, manufacturing and development capabilities, both locally and and internationally.
The signing of the MoU with Ajlan is part of the company’s business development plan to have a Saudi partner to jointly progress a feasible development pathway for the project, and to take advantage of the incentives available in the Kingdom of Saudi Arabia for resource projects.
This MoU builds on the memorandum of understanding signed with the Ministry of Investment Saudi Arabia (MISA) in 2023 for downstream processing of vanadium from the Victory Bore Project and on the outstanding pre-feasibility study (PFS) results.