VanadiumCorp Resource Inc (TSX-V:VRB) announced a non-brokered private placement financing to raise up to C$1.5 million.
The company said proceeds of the offering will be used for metallurgical test work for its Lac Doré vanadium-titanium-iron deposit and the procurement of equipment for its production test facility for high-quality vanadium electrolyte for use in vanadium redox flow batteries (VRFB).
"We are delighted that equipment procurement for our electrolyte facility is on schedule,” VanadiumCorp Resource CEO Paul McGuigan said in a statement.
“VanadiumCorp will be able to plan production for the expanding global market for this key ingredient in long-duration vanadium redox flow batteries,” he added.
VanadiumCorp noted it will issue up to 15 million company units, at a price of $0.10 per unit, with each unit consisting of one VanadiumCorp common share plus one purchase warrant to acquire an additional company common share at a price of $0.18 for a period of two years.
The company added that VanadiumCorp directors and officers may acquire securities under the financing, which will be subject to a four-month hold from the closing date in addition to TSX Venture exchange approval.
VanadiumCorp also stated it will pay finders’ fees in cash and broker purchase warrants bearing the same terms as the unit warrants.
VanadiumCorp wholly owns two strategic vanadium, titanium, and iron properties in Quebec. The Iron T is near Matagami, and the company's flagship Lac Doré property is near Chibougamau.
It also owns 100% of a newly patented hydrometallurgical process called VEPT (the VanadiumCorp, Electrochem, Process Technology), which consists of digesting vanadiferous feedstocks into concentrated sulfuric acid, recovering vanadium, titanium, ferrous sulphate, and silica products from mineral concentrate feedstocks, such as titanomagnetite.
Contact Sean at sean@proactiveinvestors.com