Technology Metals Australia Ltd (ASX:TMT) has secured $6 million in funding through the placement of 12 million shares priced at 50 cents to sophisticated and institutional investors.
Funds raised will be used to advance the definitive feasibility study (DFS) on the company’s 100% owned Gabanintha Vanadium Project and for additional exploration activities.
Technology Metals’ managing director Ian Prentice said: “This is a particularly pleasing outcome for the company with the calibre of institutional and high net worth investors that have joined the register having the capacity to add value and contribute to the company as we progress the development of one of the highest grade, best quality, large scale vanadium projects in the World in a period of tightening vanadium supplies.”
READ: Technology Metals Australia produces 99.53% purity vanadium in tests of Gabanintha ore
The Gabanintha Vanadium Project is located 40 kilometres southeast of Meekatharra in the mid-west region of Western Australia.
It aims to develop this project to potentially supply high-quality V2O5 flake product to the steel market and the emerging vanadium redox battery (VRB) market.
Vanadium prices surging higher
Technology Metals has commodity price tailwinds at its back with the vanadium price recently breaking out above US$20 per pound for V2O5 vanadium pentoxide flake 98%.
Given, Technology Metals has achieved an impressive high purity 99.53% vanadium pentoxide in recent Gabanintha test work, it is leveraged to this price momentum.
Although vanadium is traditionally used to harden steel, vanadium flow batteries (VRFBs) are becoming increasingly popular especially for commercial energy storage, most notably in China.