Ferro-Alloy Resources (LON:FAR) has taken a significant step forward in its journey, entering into a strategic offtake term sheet with Austria-based LL-Resources (LLR). This agreement covers the entire production of standard vanadium pentoxide (V2O5) from Phase 1 of the Balausa project in Kazakhstan. With this agreement in place, the company is well-positioned to advance financing discussions with confidence, a major milestone for the rapidly growing mining and commodities company.
The offtake agreement, initially for six years with options for extension, is expected to bring stability and predictability to Ferro-Alloy Resources’ operations. LLR’s extensive global network, serving over 300 steel mills and foundries, adds significant credibility to the project. With a turnover of €550 million in 2023 and production facilities spanning Europe, the Middle East, and North Africa, LLR’s partnership bolsters FAR’s market reach.
Yuen Low, Research Analyst at Panmure Liberum, remarked on the development: “The significance of this agreement is that it allows Ferro-Alloy Resources to negotiate project financing with confidence in its routes to market.”
