Special Report: A $5m cash top-up following strong demand from investors leaves Australian Vanadium well-funded to progress a bankable feasibility study and work towards securing key project approvals. 

Australian Vanadium (ASX:AVL) has completed a $5m placement, with institutional and sophisticated investors keen to participate.

The company received firm commitments for 357,142,857 shares at 1.4c each, which represents about 14 per cent of Australian Vanadium shares on issue.

The placement was done at a 10.02 per cent discount to the 15-day volume average weighted price of 1.56c and a 17.65 per cent discount to the last closing price of 1.7c.

As a bonus, and leaving the door open for AVL to raise more cash down the track, investors will be granted one free attaching option for every two new shares subscribed for under the placement. This is subject to shareholder approval.

The capital raising was managed by 180 Markets, Australia’s newest capital raising platform.

Managing director Vincent Algar said the funds raised put AVL in a strong financial position moving forward.

The extra cash will be used to complete a bankable feasibility study and advance the technical and financial aspects of project delivery, including securing environmental and other approvals, for AVL’s flagship Australian Vanadium project.

The company received the key mining lease for the 760sqkm project in late August. The project was also granted ‘Lead Agency Status’ from WA’s Department of Mines in April.

‘Lead Agency Status’, which complements the ‘Major Project Status’ awarded by the federal government in September last year, streamlines the official approvals process and provides greater certainty to groups considering investing in the tier 1 project.

A pre-feasibility study already shows the 5,600-tonne-a-year, +17-year project will be in the lowest quartile globally when it comes to costs.


Advancing exploration near headlining Julimar discovery

The cash raised will also be used to undertake nickel and platinum group elements (PGEs) exploration at AVL’s Coates project.

The company recently applied for tenements north and east of the Coates project, which has similar rocks to those hosting Chalice Gold Mines’ (ASX:CHN) regionally defining Julimar discovery.

At Julimar, follow up exploration has since confirmed that Chalice could be onto something very significant in this previously overlooked mineral province near Perth, WA.

29km from Julimar, AVL is collaborating with Lithium Australia (ASX:LIT) and private company Mercator Metals to explore for nickel, base metals, gold and PGEs at the Coates project.

New tenement applications will add 52.6sqkm of area to the east and north of the existing project, which was previously explored exclusively for vanadium.


This article was developed in collaboration with Australian Vanadium, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.