Pursuit Minerals (ASX:PUR) has received firm acceptances for a substantially oversubscribed placement of shares at a 10 cents each to raise $1.61 million.
The shares have been placed with a variety of institutional and sophisticated investors, primarily in Australia.
Pursuit will use the proceeds from the placement to develop its vanadium exploration projects in Finland and Sweden, as well as its zinc projects in north-west Queensland.
High-grade vanadium in Finland
At Pursuit’s recently acquired Koitelainen project in northern Finland, the company has identified nine previous drill holes that produced vanadium values ranging from 2.0-3.7% vanadium oxide.
Notably, the near-surface average grade of 2.3% vanadium is exceptionally high and places the project in the upper echelon of projects globally.
Pursuit is continuing to compile the historical data from 27 drill holes to design a drill program to test extensions to the high-grade vanadium mineralisation at the Koitelainen V prospect.
Vanadium prices continue to rise
Vanadium has been the best performing battery metal over the past 18 months, with the price for vanadium pentoxide flake increasing by more than 300% to around US$15 per pound.
Pursuit managing director Jeremy Read said: “This is an excellent result for Pursuit.
“It confirms the quality of our assets and the great potential for share price growth in coming years, particularly as our vanadium projects come to fruition and the vanadium price continues to be strongly supported, fuelled by growth in demand for redox flow battery applications for large-scale energy storage and greater vanadium demand from China.”