REG - Ferro-Alloy Resrcs. - Framework Agreement for Phase 1 of Balasausqandiq

Ferro-Alloy ResourcesAnnouncement

02/06/2025 07:00

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RNS Number : 8983K  Ferro-Alloy Resources Limited  02 June 2025

2 June 2025

Ferro-Alloy Resources Limited

("Ferro-Alloy", the "Group" or the "Company")

 

Framework Agreement to Design and Construct Phase 1 of the Balasausqandiq
Project

 

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer
of the large Balasausqandiq vanadium deposit in Southern Kazakhstan (the
"Balasausqandiq Project"), is pleased to announce that it has entered into a
non-binding, non-exclusive framework agreement (the "Agreement") with China
National Chemical Engineering Sixth Construction Co., Ltd ("CC6") to design
and construct Phase 1 of the Balasausqandiq Project.

 

Framework agreement

 

The Company and CC6 (together, the "Parties") have entered into the Agreement
to document the common intent between the Parties to advance CC6's potential
engagement as the contractor to undertake the front end engineering and design
("FEED") contract and the engineering, procurement and construction ("EPC")
contract (together, the "Contracts") for Phase 1 of the Balasausqandiq
Project.

Under the Agreement, the Parties will consider and negotiate the potential
contractual terms between the Parties that could lead to the award of the
Contracts to CC6.

The Agreement is non-binding and non-exclusive. Any ultimate contractual
relationship between the Parties remains subject to the entry into the
relevant documentation on terms acceptable to both Parties.

 

CC6

 

CC6, founded in 1965, is a wholly owned subsidiary of China National Chemical
Engineering Group Corp, and specialises in the engineering, design and
construction of industrial processing plants.

CC6 has completed in excess of 4,000 large or medium sized projects in over 20
countries, including Kazakhstan, and has significant prior experience and
expertise with FEED and EPC contracts for the design or construction of more
than 50 vanadium related projects.

 

Commenting on the framework agreement, Nick Bridgen, CEO of Ferro-Alloy
Resources, said:

 

"CC6 is one of the most experienced construction companies in the world, with
directly relevant experience in both vanadium and Kazakhstan. Signing this
agreement is the first step towards what could turn out to be a very
advantageous partnership, which could significantly advance the project
schedule and ensure cost-effective engineering and construction.

I look forward to the continuation of our positive engagement with CC6, and
the progression towards a contractual relationship that benefits both
Parties."

 

ENDS

 

 

For further information, visit www.ferro-alloy.com or contact:

 

 Ferro-Alloy Resources Limited  Nick Bridgen (CEO) / William Callewaert (CFO)  info@ferro-alloy.com

 Shore Capital                  Toby Gibbs / Lucy Bowden                       +44 207 408 4090

 (Joint Corporate Broker)

 Panmure Liberum Limited        Scott Mathieson / John More                    +44 20 3100 2000

 (Joint Corporate Broker)

 BlytheRay (Financial PR)       Tim Blythe / Megan Ray / Will Jones            +44 20 7138 3204

 

Notes to Editors

About Ferro-Alloy Resources Limited:

The Company's operations are all located at the Balasausqandiq deposit in
Kyzylordinskoye Oblast in the South of Kazakhstan.

Balasausqandiq is a very large deposit, with vanadium as the principal product
together with the carbon black substitute ("CBS") and several by-products.
Owing to the nature of the ore, the capital and operating costs are very much
lower than for other vanadium projects.

The most recent mineral resource estimate for ore-body 1 (of seven) provided
an Indicated Mineral Resource of 32.9 million tonnes at a mean grade of 0.62%
vanadium pentoxide ("V(2)O(5)") equating to 203,364 contained tonnes of
V(2)O(5). In the system of reserve estimation used in Kazakhstan the reserves
are estimated to be over 70 million tonnes in ore-bodies 1 to 5, but this does
not include the full depth of ore-bodies 2 to 5, or the remaining ore-bodies
which remain substantially unexplored.

The grade of carbon in the deposit is over 8%. The carbon flows through to the
tailings from where it is concentrated, in a simple low-cost operation, into a
40% carbon product, the CBS, that can be used in place of carbon black as a
reinforcing filler in the making of rubber.

The Project will be developed in two phases, Phase 1 and Phase 2, with Phase 1
treating 1.65 million tonnes per year.

There is an existing concentrate processing operation at the site of the
Balasausqandiq deposit. The production facilities were originally created from
a 15,000 tonnes per year pilot plant, which was then expanded and adapted to
recover vanadium, molybdenum and nickel from purchased concentrates.
Alongside this operation, there is a well-equipped laboratory and highly
skilled technical team, who have already developed the technology that is
being built into the feasibility study and is further developing and
optimising processes needed for future vanadium and carbon operations. The
plant will operate only when profitable concentrates are available and, when
not operating as a production facility, will operate on an expanded basis as
an R&D centre.

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