Reed Resources and China Non-ferrous Metal Industry enter discussions to development Vanadium Project
Reed Resources has entered into discussions with China
Non-ferrous Metal Industry’s Foreign Engineering and Construction which, if successfully concluded, would allow development of
Reed’s Barrambie Vanadium Project in Western Australia.
The
proposal received specifically relates to the provision of an
engineering procurement and construction contract and project financing
assistance by NFC for Barrambie, which is recognised as one of the
world’s highest grade vanadium deposits.
Reed completed a two
year AUD$20M definitive feasibility study for Barrambie in 2009 which
forecast average earnings per annum in excess of AUD$100m at the current
vanadium price.
Importantly, it is highly geared to any
increases above the current price of US$34/kg.
Reed has agreed to
deal exclusively with NFC and Arccon (WA) Pty Ltd (Arccon) regarding a
development and financing proposal for Barrambie until 31 August 2010.
The
approach by NFC has been facilitated by Arccon, a leading engineering
and construction company servicing the mining and commercial building
sectors of Western Australia.
Chris Reed, managing director, said
the discussions are at a preliminary stage. No party is under any
obligation to proceed and there is no certainty that a transaction will
eventuate.
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