REG - Ferro-Alloy Resrcs. - Non-Binding Offtake Term Sheet for Balasausqandiq

Ferro-Alloy ResourcesAnnouncement

17/12/2024 07:00

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RNS Number : 2889Q  Ferro-Alloy Resources Limited  17 December 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT FORMS PART OF THE LAWS OF
ENGLAND AND WALES BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018
("MAR").

 

17 December 2024

Ferro-Alloy Resources Limited

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

 

Non-Binding Offtake Term Sheet for Standard Vanadium Pentoxide from 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, is
pleased to announce that it has entered into a non-binding offtake term sheet
with LL-Resources GmbH ("LLR") for the sale of standard vanadium pentoxide
from Phase 1 of the Balasausqandiq Project.

 

·    The Company has entered into a non-binding offtake term sheet with
LLR for sale of the entire production of standard vanadium pentoxide from
Phase 1 of the Balasausqandiq Project

·    The initial term will be for a period of six years commencing from
the start of production, with the option for subsequent terms

·    Headquartered in Graz, Austria, and founded in 2011 as a trading
company, LLR has a significant presence in the global commodities sector
serving more than 300 steel mills, foundries, traders and other end users.
With a worldwide turnover of €550 million in 2023, LLR is a trading and
producing company for a wide variety of ferro-alloys and metals, with
production sites in Germany (aluminium), Sweden (ferro-titanium), Slovenia
(cored wire), Latvia (ferro-vanadium / ferro-titanium), Oman (ferro-chrome)
and Albania (chrome ore). Further information on LLR can be found at
www.ll-resources.com (http://www.ll-resources.com)

·    The Company is continuing the development of its expertise in the
production of other various vanadium products and has already developed the
technological processes to produce high purity vanadium pentoxide, mixed
vanadium oxides and vanadium electrolyte (to be produced at the Phase 1
Balasausqandiq plant in line with market demand). All of these products will
be marketed separately

 

 

Commenting on the term sheet, Nick Bridgen, CEO of Ferro-Alloy Resources said:

"In LLR, we have a trading partner located in the heart of Europe and with a
global reach. As we come to the final stages of our feasibility study, this
will enable us to begin to negotiate the project financing with confidence in
our routes to market."

 

 

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/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 one (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 70m 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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