PERTH (miningweekly.com) – ASX-listed Australian Vanadium has launched an underwritten share purchase plan (SPP) to raise a minimum of A$3.5-million to advance the development of its Australian Vanadium project, in Western Australia.
Eligible shareholders will be given the opportunity to subscribe for up to A$15 000 worth of new shares in Australian Vanadium, priced at 1.15c each, with Patersons Securities acting as lead manager and underwriter to the offer.
Under the ASX listing rules, no more than 593.15-million new shares can be issued under the SPP.
Australian Vanadium has also agreed that Patersons should facilitate a new share offer to professional and sophisticated investors to raise a further A$4-million as a top-up placement to the SPP.
The top-up placement will also be conducted under Australian Vanadium’s existing placement capacity.
“Australian Vanadium is at an exciting time in the development of the Australian Vanadium project, with the upcoming completion of pilot-scale testwork and the definitive feasibility study,” said MD Vincent Algar.
“The additional funds delivered through the SPP will enable the company to complete the definitive feasibility study, commence the front-end engineering and design process, update the resource and reserves with a view to extending the defined mine life, as well as continue the negotiation of offtake agreements and other key project licenses and approvals.”