Surefire Resources NL (ASX:SRN) has completed an A$3.4 million capital-raising initiative, including a placement and a non-renounceable rights issue.
The placement garnered around A$2 million from sophisticated and professional investors, while the rights issue contributed about A$1.4 million.
Demonstrating a strong commitment and confidence in the company’s projects and its future, Surefire’s Board of Directors and management took their full rights issue entitlements.
The company has thanked all its shareholders for their continuing support in challenging markets.
Progressing to DFS
This financial milestone follows the encouraging pre-feasibility study (PFS) results for the company's Victory Bore Vanadium Project.
Following this successful capital infusion and the positive PFS, Surefire is set to advance the project to a definitive feasibility study (DFS).
$SRN Surefire Resources says PFS shows Victory Bore is world-class vanadium project https://t.co/xLZ9F8Togu @SurefireResNL #SRN #ASX #ASXNews— Proactive Australia (@proactive_au) December 5, 2023
Encouraging PFS
Key outcomes of the PFS include a pre-tax net present value (NPV) at a 10% discount rate of about A$1.7 million, a pre-tax internal rate of return (IRR) of 42.22%, and an estimated capital cost of A$767 million.
The project, with a life span of 24 years, anticipates a pre-tax payback period of 2.4 years.
The Victory Bore Vanadium Project has a declared maiden probable ore reserve of 93 million tonnes at 0.35% vanadium, 5.2% titanium and 19.8% iron.
This JORC-compliant reserve positions the project as one of Australia's largest undeveloped vanadium ventures.
Forward plan
Aside from the DFS, plans are underway to establish a downstream vanadium processing plant in the Kingdom of Saudi Arabia (KSA).
In line with these developments, the company's managing director Paul Burton and chairman Vladimir Nikolaenko will be attending the Future Minerals Forum (FMF) in January 2024 in Riyadh, KSA.