Australian Vanadium Ltd (ASX:AVL) has raised $6.6 million through two capital raisings, a $5.2 million share purchase plan (SPP) and a supplementary placement which raised a further $1.4 million.
Funds from the raisings will go towards completing the definitive feasibility study and to conduct further infill drilling of existing inferred resources, with the aim of extending planned mine life.
Award of major project status
Australian Vanadium managing director Vincent Algar said the success of both raisings demonstrated great confidence in AVL from its shareholders and in the Australian Vanadium Project.
He added: “With the award of major project status by the Australian Government and recent technical advances, the confidence of management and prospective investors continues to grow.”
The SPP provided eligible shareholders the opportunity to apply for up to $15,000 of new fully paid ordinary shares in AVL at a 1.15-cent price.
A total of 537,476,491 shares will be issued for both the SPP and placement on September 26 and begin trading Friday, September 27.
Studies focused on optimisation
Along with completing pilot studies and the definitive feasibility study, the funding will assist in continuing technical studies designed to optimise the processing circuit and establish further value-added outcomes.
Capital and operating costs will be further optimised, with the goal of becoming one of the lowest-cost vanadium producers globally.
AVL is also working with Metso on innovative pelletising work for the roast section of the processing plant, with increased recoveries being seen in recent test work.
Environmental studies are progressing towards a completed submission to the Environmental Protection Authority, with additional work including flora and fauna surveys being undertaken on a proposed pipeline route for water delivery from Westgold’s nearby operations.
AVL recently signed a memorandum of understanding with Westgold Resources Ltd (ASX:WGX) to cooperate on supply of life-of-mine water requirements for the project.
“Potential to be multi-generational mine”
Algar added the company was actively engaged in positive discussions with prospective off-take, finance and joint venture partners.
He said: “The Australian Vanadium Project has the potential to be a multi-generational vanadium producing mine.
“We are confident that the work we are undertaking will bring value to our shareholders, both existing and new.
“The team continues to progress this world-class project, with the goal of becoming a successful, low-cost vanadium producer.”
Building uptake of vanadium redox flow battery
The funding will also allow the company’s wholly-owned subsidiary VSUN Energy to progress opportunities for the sale and deployment of vanadium redox flow batteries.
The recent news of a VRFB sale to an orchard in Victoria and a grant application for a remote Western Australian community school further support the company’s progress in building the uptake of VRFB in Australia.
AVL’s project is currently one of the highest-grade vanadium projects being advanced globally, with 183.6 million tonnes at 0.76% vanadium pentoxide, containing a high-grade zone of 96.7 million tonnes at 1% vanadium.
The project’s ore reserve of 18.24 million tonnes at 1.04% is comprised of a proved reserve of 9.82 million tonnes at 1.07% vanadium and a probable reserve of 8.42 million tonnes at 1.01%.