PERTH (miningweekly.com) – ASX-listed Australian Vanadium will raise A$8.7-million to complete a bankable feasibility study on its namesake vanadium project, and finalise the design and build of Australia’s first vanadium redox flow battery electrolyte supply plant.
The company would place 348-million shares, at a price of 2.5c each under its existing placement capacity, and would issue one free attaching listed option for every share issued, exercisable at a price of 2.5c each and expiring in December 2022.
The offer price represents an 11% discount to the company’s 15-day volume weighted average share price, and a 13.9% discount to its last closing price.
“The strong demand from investors for Australian Vanadium supports the view that the company is now seen as the next global producer of vanadium based in Australia,” said MD Vincent Algar.
“The funds will allow us to add further value to the company as we complete our bankable feasibility study and move the company towards final financial decision, approval and construction. The year ahead looks positive for vanadium in both steel and battery sectors. The funds raised through the placement puts the company in a strong financial position to deliver and realise further value for all stakeholders.”
The Australian Vanadium project, in Western Australia, has been granted federal Major Project status and State Lead Agency status by the Western Australian government.
An updated prefeasibility study previously estimated that the project would require a capital investment of $253-million, producing some 24.3-million pounds of vanadium products annually, over a mine life of 25 years.
The project is estimated to have a pre-tax net present value of A$909-million and an internal rate of return of 17.5%.