Resources Top 5: Vanadium Resources rockets on magnetite MoU

Vanadium Resources has signed an MoU with China Precious Asia Ltd for a magnetite ore supply agreement from Steelpoortdrift project in South Africa.

Vanadium Resources has rocketed on signing an MoU for DSO magnetite supply from its South African project. Pic: Getty Images

• Vanadium Resources signs non-binding MoU to sell magnetite ore from its Steelpoortdrift project in South Africa

• A strategic alliance will fast-track FEED studies for the Kuda Tasi and Jahal oil fields in Timor-Leste

• Sunrise Energy Metals has launched a share purchase plan (SPP) to raise up to $1.5m before costs

Your standout resources stocks for Tuesday, June 17, 2025.

Vanadium Resources (ASX:VR8)

This star performer rocketed 164% to a high of 3.7c before closing at 2.2c, a 57.14% rise on the previous close.

The backdrop is it signed a non-binding MoU with China Precious Asia Ltd (CPAL) for a magnetite ore supply agreement from its Steelpoortdrift vanadium project in South Africa.

Under the terms of the MoU, VanRes would supply CPAL with an average of 100,000 tonnes of vanadium-rich magnetite direct shipping ore per month.

This will allow VR8 to become a near-term producer from the substantial JORC resource base and unlock early revenues and operating cashflows in support of its staged development and funding strategy for Steelpoortdrift.

VR8 will also retain full flexibility to scale into full development as vanadium market conditions improve.

The initiative has been made possible due to the suite of valuable minerals within the Steelpoortdrift orebody and VanRes holding a fully permitted mining right over the Steelpoortdrift 365KT farm.

“We are very pleased to have signed this MoU with a quality partner like CPAL for the supply of magnetite ore,” VR8 executive chairman Jurie Wessels said.

“Through our ongoing strategic equity and offtake process, it became increasingly apparent that there is a compelling opportunity to potentially transition the company toward near-term production, even at this low point in the vanadium market cycle.

“This has been made possible by our advanced permitting status and the suite of valuable minerals within Steelpoortdrift’s ore, which contains not only vanadium credits but also iron-rich magnetite.

"Based on the company’s internal assessments and the volumes proposed under the MoU, we anticipate that a DSO operation at Steelpoortdrift has the potential to generate material positive operating cashflows for VR8 and its shareholders. 

“While the MoU is non-binding, the level of engagement and interest from CPAL gives me confidence that a binding and value-accretive commercial agreement can be reached."

With vanadium prices not supportive of funding a larger development right now, the magnetite deal will help unlock near term cash flows for the explorer that prevent shareholder dilution.

Founded in 2012, CPAL is a metals and minerals trader and processor of magnetite-bearing ore, targeting Asian steel markets. 

CPAL’s focus on vanadium-rich magnetite ore aligns with China’s broader push to secure primary sources of vanadium.

VR8 also continues to assess additional near-term, value-accretive opportunities, such as profit share agreements with existing operations, that complement the development of Steelpoortdrift and are not mutually exclusive to DSO operations.

Finder Energy Holdings (ASX:FDR)

Forming a strategic alliance with subsurface technology company SLB (formerly Schlumberger) to fast-track front-end engineering and design (FEED) studies for the Kuda Tasi and Jahal oil fields in Timor-Leste has seen Finder Energy Holdings (ASX:FDR) reach a two-year high of 9.2c.

The company was reinstated to ASX quotation on releasing the alliance announcement and investors responded strongly, with shares opening at 7.2c and rising to 9.2c, a 41.54% increase on the previous close on June 12, before settling at 8.5c for a ~31% gain.

This deal with the global energy giant will cut about 12 months off the project timeline, with SLB already mobilising teams to kick off drilling and subsea design work. 

The partnership will reduce Finder’s upfront costs through a shared contracting model, and creates a joint project team to drive things forward.

SLB has a presence in at least 100 countries and has more than 100,000 employees including a regional office in Perth and a strong presence in Timor-Leste.

Having the backing and support of a major industry player such as SLB, provides significant third-party validation for the KTJ development project.

Under the Development Alliance Agreement and Accelerated FEED Project Agreement, the two parties will immediately mobilise resources to complete the key drilling and subsea components within six to nine months, about 12 months ahead of schedule.

Finder Energy (ASX:FDR) chief operating officer Mark Robertson will lead the joint project team while SLB will deploy technical and project management resources across multiple disciplines including subsurface, well construction and subsea engineering.

“Finder is pursuing an acceleration strategy to bring forward first oil at Kuda Tasi and Jahal,” chief executive officer Damon Neaves said.

“This alliance with SLB brings enormous resources and development capability to the project not only accelerating FEED but establishing a pathway through to FID, the construction phase and beyond.”

FDR recently completed reprocessing of the Ikan 3D seismic that covers PSC 19-11 and focuses on the Kuda Tasi and Jahal development area, which collectively host best estimate (2C) contingent resources of 22 million barrels (MMbbl) of oil.

The significant improvements in imaging observed within the reservoir pay interval are expected to be used to finalise placement of development wells to optimise production and facilitate other project milestones.

Previous modelling of the two fields indicated that they could produce up to 10MMbbl of oil in the first 18 months of production.

Development of the KTJ project is expected to be through subsea wells linked to a central manifold that in turn feeds into a floating production, storage and offtake vessel.

Sunrise Energy Metals (ASX:SRL)

Launching a share purchase plan (SPP) to raise up to $1.5m before costs along with a recent placement that brought in $6m will arm Sunrise Energy Metals to bring the Syerston scandium deposit in central NSW closer to a development decision.

The SPP will provide eligible shareholders an opportunity to subscribe for up to $5000 worth of new fully paid ordinary shares at 30c per share without incurring any brokerage or other transaction costs.

This is on the same basis as the recent placement of 20m fully paid ordinary shares and is open to all eligible existing shareholders on the company’s share register at 7pm AEST on Thursday, April 17, 2025.

The offer includes one option for every SPP share subscribed issued at nil consideration and exercisable at a price of 40 cents before May 31, 2027.

Sunrise Energy Metals shares have been as much as 43.5% higher to a daily high of 71c.

Funds raised in the SPP and placement will support:

• A drilling campaign aimed at further expanding high-grade scandium zones at Syerston;
• Completion of the Syerston scandium feasibility study, targeted for Q3 2025; and
• Continued engagement with potential scandium customers and end-users. 

FMR Resources (ASX:FMR)

After securing a right to earn a majority interest in a prospective copper-gold-molybdenite porphyry project in Chile, FMR Resources hit a new five-year high of 29.5c, a lift of 43.9% on the most recent close.

The company has entered into a conditional binding term sheet giving it the right to earn up to a 60% interest in the project with a large porphyry target untested at depth.

It will joint venture into selected tenements within the Llahuin Project held by Southern Hemisphere Mining, which overlie the Southern Porphyry Target.

With proven fertility along a ~6km corridor at Llahuin, including historical shallow copper porphyry mineralisation directly above the target, this delivers FMR drill-ready targets for Q4 2025.

The Southern Porphyry JV tenement package will complement the company’s Fairfield and Fintry projects in Canada, which are prospective for copper and rare earth elements. 

Providing impetus for the acquisition and exploration plans, the company has received firm commitments for a $2.2m capital raising at 16c through a placement to existing and new sophisticated investors.

This has seen renowned resources investor and successful explorer Mark Creasy welcomed to the register as a major shareholder. 

Creasy is a highly supportive shareholder with an enviable record of exploration discovery and value creation over multiple decades. 

In conjunction, FMR has appointed Oliver Kiddie as managing director.

Kiddie is a geologist with more than 20 years of experience across exploration, resource definition, project development and production throughout Australia and internationally. 

He has extensive experience in base metal and gold exploration through senior management, executive and directorship positions, including Dominion Mining, European Goldfields, the Creasy Group and Legend Mining.

Pivotal Metals (ASX:PVT)

Canadian-focused explorer Pivotal Metals had a stellar start to the trading day, rising 117% to 1.3c, before a trading halt and speeding ticket from the ASX.

That halt will be lifted at the start of normal ASX trading on Thursday, June 19, 2025, or when an announcement is released to the market, whichever occurs earliest.

PVT holds the recently acquired flagship Horden Lake property, which contains a JORC-compliant indicated and inferred resource of 37Mt at 1.1% copper equivalent, comprising copper, nickel, palladium and gold. 

Pivotal intends to grow the mineral endowment of Horden Lake, in parallel with de-risking the project from an engineering, environmental and economic perspective.

Horden Lake is complemented by a battery metals exploration portfolio within the prolific Belleterre-Angliers Greenstone Belt (BAGB) in Quebec comprising the Midrim, Laforce, Alotta and Lorraine high-grade nickel-copper-PGM sulphide projects with gold potential.

Having delineated the Horden Lake resource, PVT is increasing its focus on the BAGB projects with the objective of making expanded and new copper and/or gold discoveries.

Supporting this intention, the company recently identified 28m at 45.2g/t gold in an historical underground channel sample.

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions.

At Stockhead, we tell it like it is. While Finder Energy is a Stockhead advertiser, it did not sponsor this article.

Originally published as Resources Top 5: Vanadium Resources rockets on magnetite MoU