Australian Vanadium Ltd (ASX:AVL) (OTCMKTS:ATVVF) (FRA:JT71) has been granted a trading halt pending announcement of an updated pre-feasibility study for the Australian Vanadium Project
The halt will remain in place until the beginning of regular ASX trade on Wednesday, December 23, or when an announcement is released to the market, whichever occurs earliest.
MOU with US Vanadium
Recently, the company signed a non-binding Memorandum of Understanding (MOU) with US Vanadium LLC (USV) concerning offtake from the namesake project in Western Australia.
The MOU sets a framework for progression to a possible formal and binding agreement before AVL’s project final investment decision (FID).
It outlines an offtake proposal for USV to acquire 2,000 tonnes of vanadium pentoxide per annum, representing 20 per cent of AVL’s planned annual production.
USV has deep ties across the North American vanadium end-user market and the capacity to act as a sales agent for future AVL high-purity vanadium products.
AVL’s offtake strategy is globally diversified and the company recognises China’s dominant role in vanadium production and consumption, as well as the increasing need for supply chain certainty by non-Chinese consumers of critical metals such as vanadium.