** Shares of Vanadium Resources VR8.AX rise as much as 164% to A$0.037, its highest level since early-November

** Stock set for best day ever, if gains hold

** VR8 shares last up 128.6% at A$0.032, as of 0245 GMT

** The vanadium producer's unit VanRes signs memorandum of understanding (MoU) with magnetite-bearing ore processor China Precious Asia (CPAL)

** Co says it would supply CPAL with an average of 100,000 metric tons of magnetite ore per month under agreement

** Around 5.6 mln shares changed hands, over 15x its 30-day avg of about 368,379 shares

** Stock up 3.2% YTD, including session's move

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com;))