Photo by: Bloomberg
PERTH (miningweekly.com) – Vanadium developer Technology Metals Australia will raise A$11.5-million in a share placement to progress the development of its Murchison technology metals project (MTMP), in Western Australia.
The company has received firm commitments for the placement of 41.1-million shares, at a price of 28c each, from existing and new strategic and institutional investors. Shareholder Resource Capital Fund (RCF) has committed to participate in the share placement, subscribing for A$2.75-million of the placement shares and increasing its shareholding in Technology Metals to nearly 18%.
“We are extremely pleased to have the ongoing support of RCF. In our opinion, the investment from RCF further endorses the high-quality nature of our vanadium asset and gives us great confidence as we progress the MTMP towards development,” said Technology Metals MD Ian Prentice.
“In addition, we are very pleased to welcome a number of new strategic and institutional shareholders to our register and acknowledge the support received from existing strategic and institutional investors, which ensured robust demand for the placement.”
The placement will be issued under the company’s existing placement capacity, with the offer price representing a 16.2% discount to Technology Metals’ 15-day volume weighted average share price.
The funds raised by the placement will be used to progress the development of the MTMP towards construction readiness, with a range of early work activities to be completed by the Technology Metals project team. These will be done in parallel with workstreams to continue the progression of permitting and approvals, and to progress financing, product marketing and customer engagement.
MTMP, some 50 km south of Meekatharra, is being developed to support annual vanadium production of 12 500 t/y over an initial 25-year mine life. The project hosts an estimated ore reserve of 44.48-million tonnes at 0.89% vanadium oxide, divided between its Gabanintha and Yarrabudda deposits.