It surged 85% to 87.5 cents early afternoon on news of the agreement to acquire 74% of the SPD Vanadium Project via staged all-scrip payments.
The new 12-month high followed Tando emerging from a trading halt.
Grade profile is high
SPD is a globally significant deposit in the vanadium production hub of Gauteng.
The grade profile is one of the highest of all ASX-listed vanadium projects with grade-in-concentrate averaging 2% vanadium pentoxide and 13% titanium dioxide.
Managing director Bill Oliver said: “We have been interested in gaining exposure to the energy storage market and see vanadium as a key commodity in the development of that sector.
“The opportunity to acquire a project of this scale with these grades, both whole rock and more importantly, grade-in-concentrate was very appealing.
“We look forward to completing the due diligence and commencing drilling and other work programs.”
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The company recently completed a capital raising of $2 million at 40 cents a share with funds to advance SPD.
Tando plans to complete test work to determine whether hydrometallurgical processes can extract high purity vanadium and titanium products.
These are sought after for numerous uses including vanadium flow batteries, where demand is forecast to increase.