Australian Vanadium is looking to institutional and sophisticated investors to raise cash for a proposed vanadium processing plant in the state’s Mid-West.
The ASX-lister says it has received firm commitments to raise $20 million from new and existing investors after offering up shares at a 4.7 cents apiece – a 17.5 per cent discount on its last close price – via a placement.
A further $7.5 million will be sought via an accompanying share purchase plan, with securities on offer to retail investors at the same price.
The majority of raise proceeds are set to go towards developing its $522 million namesake vanadium processing plant, to be built some 40 kilometres south of Meekatharra.
AVL lodged plans with the state’s envrionmental watchdog earlier this week, seeking permission to clear several hectares of vegetation to make way for a processing plant, evaporation ponds, water production bores, a reverse osmosis plant, an office and access roads.
According to environmental documents lodged in support of the proposal, the plant would process 13,000 tonnes of vanadium pentoxide flake and 1 million tonnes of iron-titanium co-product annually and operate for up to 50 years.
Managing director Vincent Algar said he was pleased with the support received for the raising.
“The funds raised through the placement and the SPP will ensure that the company remains well funded while we implement the next phases of the development program for the Australian Vanadium Project,” Mr Algar said.
The call for capital comes months after AVL was given $49 million by the federal government in March to help guide the project into the execution phase.
Canaccord Genuity is lead maanger to the placement and share purchase plan.
Australian Vanadium shares closed the day 12.3 per cent lower at 5 cents.
