Technology Metals Australia Ltd (ASX:TMT) has raised more than $4.5 million before costs in a share placement of 17,510,833 shares at 26 cents a share.
The company will use funds raised to advance the definitive feasibility study (DFS) for its 100%-owned Gabanintha Vanadium Project in Western Australia.
Placement shares were issued to sophisticated and professional investors and included a free attaching option on a one-for-two basis exercisable at 40 cents on or before May 24, 2020.
An updated list of the top 20 shareholders was released to market today, indicating the group held 44.94% ownership, or 39,345,024 shares.
Technology Metals is working on a resource upgrade for Gabanintha as it targets mid-year delivery of its DFS.
Gabanintha’s global resource comprises 98.4 million tonnes at 0.8% vanadium in the Northern Block and 21.5 million tonnes at 0.9% vanadium in the southern tenement.
In the company’s December quarterly, chairman Michael Fry said: “The DFS on the large, long-life, low-cost Gabanintha Vanadium Project is progressing extremely well.
“Delivery of very compelling metallurgical results, both vanadium product purity and base metal concentrate, [confirms] the very high quality of this world-class development project.
“The 2018 drilling program results are expected to support a material increase in the global resource for the project and more importantly, the indicated resource estimate.”
READ: Technology Metals preparing vanadium resource update ahead of mid-year DFS
The company released its pre-feasibility study for Gabanintha in June last year, valuing the project at $1.28 billion at a 10% discount.
The internal rate of return was 55% while mine life was estimated at 13 years, with a 3.4-year payback.
Speaking to Proactive Investors, company executive director Ian Prentice said the study had delivered a technically-strong and financially-robust project which was based on about 21 million tonnes of the company’s 120 million tonne resource.