Australian Vanadium Ltd (ASX:AVL) has been granted a trading halt by the ASX as it prepares to make a capital raising announcement.
The halt will remain in place until the start of regular trade on Tuesday, August 24, or until an announcement is released to the market, whichever occurs earliest.
US Vanadium MOU
Last week, the company signed a Memorandum of Understanding (MOU) with specialty chemical producer US Vanadium LLC for the supply of high-purity vanadium oxides and a licence for vanadium electrolyte production.
This agreement will allow AVL to begin local vanadium electrolyte production to support growing interest in the emerging Australian VRFB market.
The MOU complements the one already signed with US Vanadium regarding future offtake of vanadium from the Australian Vanadium Project, for use in the US critical metals market.
Both MOUs will lead to a binding mutual vanadium supply and technology licence agreement between the two companies.
AVL has also recently been awarded a $3.69 million grant through the Australian Government’s Modern Manufacturing Initiative (MMI) to develop a high purity vanadium production circuit, build and operate a 33MWh capacity vanadium electrolyte plant and produce locally assembled prototype VRFB systems for domestic and standalone remote power systems.