PERTH (miningweekly.com) – ASX-listed Australian Vanadium has raised more than A$6-million through option conversion, to fund the completion of a definitive feasibility study (DFS) on the Gabanintha vanadium project, in Western Australia.
The company on Thursday noted that more than 204.59-million options had been converted into shares by 264 holders during December last year. An additional 62.75-million options were underwritten, raising a further A$1.25-million.
“Starting 2019 with a healthy cash balance enables us to move swiftly forwards with our plan for the Gabanintha vanadium project. Timelines can now be accelerated, and we are confident that we have a solid basis to inspire confidence in prospective investors and project partners,” said Australian Vanadium MD Vincent Algar.
A prefeasibility study into the project found that the project would cost some $354-million to develop into a 900 000 t/y vanadium pentoxide operation, over an initial mine life of 17 years.
The study estimated a post-tax net present value of between $125-million and $1.41-billion, depending on the price assumptions.
As part of the DFS work, Australian Vanadium has initiated a pilot scale metallurgical study, which will start with a diamond drilling sample collection in mid January.