Vanadium5 Oct 2016 11:45
Walkley – From RNS dated 7th June:-
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa (the "Project") is pleased to announce the finalisation of an offtake agreement for all the Project's vanadium **** product with an established international company.
The company has entered into an agreement for a period of five years from first production for all the vanadium **** produced at attractive price terms.
The market for vanadium is both dynamic and diversified with the majority of current consumption going to steel application. The growth market for vanadium is its use in batteries with the advancement of vanadium redox batteries ("VRBs") as a potential solution for grid energy storage associated with renewable energy.
The Company is also in advanced discussions with an offtake partner for the HPI powder, which, on finalisation, will complete the Company's objective of securing agreements across the Project's three products.
I believe the above means that the eventual delivery and sale of IRONVELDs Vanadium Offtake will put a nice cushion under our operating costs once mining commences.
ALSO an earlier RNS (20th May) announced that OREPORT would take all the Titanium offtake and be given first right of refusal for the Vanadium offtake (now a redundant issue) and all of the mines main output i.e. HPI
So it appears that the IRONVELDS sales plan is well in place. All we have to do now is bottom out the capital, build a mine and start digging!