As said I don't think it would be reasonable or wise to sign any binding off takes currently as it would force them to raise the cash needed to build the mine. So unless an offtake company is willing to pony up that cash and possibly lock Vanadium prices higher then the current price it isn't likely to happen. So given the current circumstances an MOU is the best we can hope for...And yes I agree, that doesn't hold much value.
In terms of the Chinese...I agree. I hope they won't become to dependent on the Chinese or majority owned by the Chinese.
But just like the global markets, VR8 also doesn't control large potential off take partners nor do they control the South African government. And the reality is China is both by far the biggest producers of steel and the front runner on Vanadium battery production.
So if other parties are hesitant to lock in contracts, then they simply have to go with those who are willing to sign.
At the end of the day they want to get in production. And as long as they get fair prices for the Vanadium and a fair deal on any equity stake they might give up, it doesn't matter that much to us share holders.
But yes I hope they diversify their costumer base.
VR8 Price at posting:
4.6¢ Sentiment: Buy Disclosure: Held
