Ferro-Alloy Resources Ltd (LON:FAR) shares were boosted as it banked investment from Vision Blue Resources, named its next chairman and provided an update on its Balausa vanadium concentrate project in Kazakhstan.
Vision Blue has made a US$1.6mln investment in the company, taking its total investment US$3.1mln.
Sir Mick Davis has been appointed as chairman, due to start after June 3. The company noted that Davis was formerly head of Xstrata Alloys, one of the world’s largest vanadium producers.
Davis, in a statement, said: “Since Vision Blue’s initial investment in March we have worked closely with the team at FAR to identify areas where we can work together to optimise the Balausa Project feasibility study to maximise value and reduce development risks.
“The Balausa Project benefits from low capital and operating costs, good infrastructure, geographic advantages and a scale that can match the significantly growing demand for vanadium as its use in high grade steel and flow batteries expands.
“I remain convinced about Balausa’s potential to become the leading vanadium asset in the world.”
At project level, the company highlighted that connection to high-voltage power has been completed, and the first draw of power is expected soon.
Chief executive Nick Bridgen added: “The completion of the second stage of the Initial Investment from Vision Blue allows us to continue to make fast progress on expanding our existing vanadium concentrate processing operation and to expand the scope and upgrade the quality of the ongoing feasibility study.”