Australian Vanadium Ltd (ASX:AVL) (FRA:JT71) (OTCMKTS:ATVVF) has debuted a share purchase plan and high-quality investor capital raising so it can complete a definitive feasibility study (DFS) for its namesake vanadium project in Western Australia.
Patersons Securities will underwrite the share purchase plan (SPP) by up to $3.5 million and offer up to $4 million of shares to professional and sophisticated investors.
The company plans to add no more than 30%, or $6.8 million in shares, to the number of new shares on issue.
Placement shares are priced at 1.15 cents a share, an 18.8% discount to the volume-weighted average price of Australian Vanadium’s past five trading days.
The shares are offered without brokerage costs or fees.
Subscribe by September
Shareholders who were on the register yesterday at 7pm Australian Eastern time can participate in the SPP offer.
New share packages of up to $15,000 can be subscribed by each registered investor.
High-quality investors participating in an offer for sophisticated and professional investors will pay the same cost per share as ordinary investors.
Subscriptions to the shareholder offer are due by 7pm AEST on September 16, 2019.
New shares are expected to be quoted on the Australian Securities Exchange by September 23, 2019.
A busy period ahead
Australian Vanadium managing director Vincent Algar reported today: “AVL is at an exciting time in the development of the Australian Vanadium Project, with the upcoming completion of pilot-scale test work and the definitive feasibility study.
“The additional funds delivered through the SPP will enable the company to complete the DFS, commence the front-end engineering and design process, update the resource and reserve with a view to extending the defined mine life as well as continuing the negotiation of offtake agreements and other key project licences and approvals.”
Algar tipped the company had an “active period ahead.”
A high-grade project
The Australian Vanadium Project, near Meekatharra in WA, features a high-grade Vanadium Titanium Magnetite (VTM) deposit.
Australian Vanadium’s project is considered one of the highest grade vanadium projects being developed in the world.
The company released a prefeasibility study (PFS) for the project late last year and hopes to start production at the project from 2021.
Australian Vanadium shares were trading at 1.2 cents by lunchtime.