Vanadium Resources Limited has secured a binding two‐year offtake agreement through its subsidiary, Vanadium Resources (Pty) Limited, with China Precious Asia Limited for the supply of vanadium‐rich magnetite direct shipping ore from its Steelpoortdrift Vanadium Project in South Africa. Under the contract, the company is set to deliver an average of 100,000 metric tonnes of ore per month—with an option to adjust the monthly volume by plus or minus 10%—over the term of the agreement. The deal marks a transition from project development to production, positioning the business to generate early operational cash flow from its fully permitted asset. The agreement is subject to several conditions precedent that are critical for moving forward. Pricing terms with the offtaker must be finalized by 30 August 2025, a necessary step given the lack of a standard spot price for the direct shipping ore. Additionally, Vanadium Resources (Pty) Limited needs to secure a suitable mining contractor and ensure that the product meets the agreed specifications, with confirmations required by 30 November 2025. Once these conditions are met, the contractual supply operation is expected to commence within 20 business days, with the contract remaining active until either two years have elapsed or 2.4 million metric tonnes of ore have been delivered, whichever comes first. The company is pursuing a low-capital expenditure and fast-to-market production approach that leverages the large, high-grade, and shallow orebody at Steelpoortdrift. This strategy is designed not only to unlock near-term revenue but also to preserve the flexibility to advance full-scale development should vanadium market conditions improve. Concurrently, Vanadium Resources Limited is exploring complementary initiatives, including the potential development of concentrator infrastructure to produce higher-grade ore products and investigating partnerships with downstream processing entities. Bullish sentiment stems from the company’s clear path to production and its focus on generating strong operational cash flow with minimal upfront costs. The significant resource base, combined with the strategic offtake, provides a solid foundation for transition into production mode, supporting investor confidence in near-term revenue opportunities and long-term growth potential. On the other hand, bearish concerns center on the conditional nature of the agreement. The need to finalize pricing mechanisms, secure a capable mining contractor, and meet strict product specifications introduces potential delays and execution risks. Moreover, uncertainties inherent in commodity markets and forward-looking assumptions could affect the anticipated operational and financial performance.