Australian Vanadium (ASX:AVL) will own between 6.67% and 8.93% of Bryah Resources when it is expected to list on 31 May 2017 through an initial public offering (IPO).
The ownership in Bryah is a result of AVL selling non-core exploration assets in exchange for equity.
Bryah intends to lodge its prospectus this Wednesday and AVL shareholders will have the opportunity to bid for shares in a priority offer.
Through its equity holding in Bryah, AVL will be leveraged to copper-gold exploration success in addition to its focus at its flagship 100% owned Gabanintha Vanadium Project in Western Australia.
The company is currently progressing towards the granting of a mining licence at Gabanintha by completing required environmental impact studies.
A desktop subterranean fauna study was recently completed and a vertebrate and separate fauna study as well as a two season level-2 flora and vegetation field study are now underway.
A metallurgical test program is expected to start next month.
Background
AVL is advancing the development of its 100%-owned Gabanintha Vanadium project measuring 91.4 million tonnes at 0.82% vanadium.
The company also aims to develop a local production capacity for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries.
AVL is actively marketing vanadium redox flow batteries in Australia through a distribution agreement with world-leading flow battery manufacturer, GILDEMEISTER.
The first vanadium redox flow battery storage system has been sold and installed at a native tree nursery in Busselton, Western Australia.
AVL is also currently drilling 4,500 metres at its Blesberg Lithium-Tantalum-Feldspar project in the Northern Cape Province of South Africa.