Director participation in the placement was approved by shareholders at a general meeting held on May 4, 2020.
Pursuant to shareholder approval and the adopted option plan, the company has issued 4.125 million Class A unquoted options and 4.125 million Class B unquoted options, with both unquoted options exercisable at 20 cents on or before May 10, 2023.
This completes the successful placement undertaken in January 2020 to progress the development of the Gabanintha Vanadium Project and for general working capital.
Shares are up 13% today, or 1.5 cents, trading at 13 cents.
Offtake and financing discussions
The company continues to progress offtake and financing discussions in support of the development of Gabanintha, highlighted by the announcement on April 27, 2020, of the signing of a Binding Offtake Agreement (BOA) with CNMC Ningxia Orient Group Company Ltd.
The sales under this agreement would generate annual revenue of A$50 million, or A$300 million over the full six-year term of the agreement, based on the current European V2O5 price.
Advisor shares issued
Under the company’s current capacity pursuant to ASX Listing Rule 7.1 and in accordance with an executed mandate, the company issued its advisor (an unrelated party of the company) 690,000 fully paid ordinary shares as a success fee for the delivery of the BOA with CNMNC.
As per the executed mandate, the shares were issued at a 15-day VWAP over the period immediately prior to the announcement, being 7.2 cents per share.
The advisor continues to support the company in its engagement with groups able to support the development of Gabanintha.
Considering current global circumstances, Technology Metals has implemented various cost-cutting measures to conserve funds, including reduction of director fees, administration costs and a range of consultant and adviser fees.
Under these circumstances, the settlement of the success fee through the issue of company shares was deemed appropriate.