Australian Vanadium (ASX:AVL) has increased its cash position by $750,000 after it today issued 50 million shares priced at $0.015.
The company will apply the funds to advancing its existing projects and for general working capital.
AVL seeks to offer investors exposure to all aspects of the vanadium value chain.
The exposure starts with the raw materials through the company’s 100%-owned Gabanintha Vanadium Project in Western Australia.
Gabanintha is currently one of the highest-grade vanadium projects being advanced globally.
Moving along the value chain, AVL has developed a local production capacity for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries (VRB).
Finally, through its 100%-owned subsidiary VSUN Energy Pty Ltd, AVL is actively marketing VRBs in Australia through a distribution agreement with world-leading flow battery manufacturer, GILDEMEISTER Energy Storage GmbH.
As part of its broader energy metals focus, AVL has also commenced a staged acquisition of a controlling 50.03% interest in the Blesberg Feldspar-Lithium-Tantalum Project in South Africa.
Recently acquired vanadium deposit
Last week, AVL was granted an exploration licence over the historical Coates vanadium deposit located 35 kilometres east of Perth in Western Australia.
Exploration at Coates was undertaken in the 1970s after its discovery in the early 1960s and previous metallurgical test work produced favourable results.
Historical mine planning was also completed although not undertaken.
The geology of the Coates deposit is unique and shows that vanadiferous magnetite is developed from the weathering profile of an underlying gabbro in a laterite outcrop on a ridge.
Due to its close proximity to Perth, a portion of the exploration licence area is covered by nature reserve or semi-rural development; however Vacant Crown Land covers the eastern portion of the original Coates vanadium deposit.