Australian Vanadium Limited (AVL) announced that it has received commitments from both existing shareholders and new investors to raise $8.7 million through a placement of 348,000,000 ordinary fully paid shares at a price of $0.025 each.
AVL said it would use part of the funding to build Australia’s first vanadium redox flow battery (VRFB) electrolyte supply plant, as well as to develop and manufacture local VRFB prototypes with support from Government’s Resources Technology and Critical Minerals Processing National Manufacturing Priority Grant.
AVL recently acquired vanadium electrolyte manufacturing technology from specialty chemical producer US Vanadium, which will allow the company to commence local vanadium electrolyte production prior to bringing its flagship Australian Vanadium Project into production.
The company will also use the funding to accelerate the development of the Australian Vanadium Project, which was awarded Federal Major Project Status in September 2019 in recognition of its national strategic significance as a battery and critical metal project.
AVL, which is finalising offtake agreements for vanadium and FeTi co-products with steel makers and battery manufacturers, said funds raised from the placement would be applied towards completion and delivery of the Bankable Feasibility Study (BFS) for the Project in preparation for Front End Engineering Design (FEED) and Project execution.
Managing Director, Vincent Algar, said the strong demand from investors was another proof that company was seen as “the next global producer of vanadium based in Australia”.
“The funds will allow us to add further value to the Company as we complete our BFS and move the Company towards final financial decision, approval and construction,” Mr Algar stated.
“The year ahead looks positive for vanadium in both steel and battery sectors. The funds raised through the Placement puts the Company in a strong financial position to deliver and realise further value for all stakeholders.”