Date: Jan 10, 2019
Australian Vanadium’s (ASX: AVL) cash reserves have been boosted to a healthy $9.68 million after an option conversion late last month added millions to the company’s coffers – placing it in a strong financial position to advance the flagship Gabanintha vanadium asset.
Investor confidence in the vanadium stock was clear after 264 holders converted more than 204 million options in December, prior to the 31 December 2018 expiry date, expanding Australian Vanadium’s cash reserves by $6.16 million.
Additionally, Westar Capital underwrote 62.75 million options, giving the company a further $1.255 million in cash.
The option conversion had the added benefit of circumventing any requirement for Australian Vanadium to raise capital in a weaker market.
“Starting 2019 with a healthy cash balance enables us to move swiftly forward with our plans for the Australian Vanadium Gabanintha vanadium project,” Australian Vanadium managing director Vincent Algar said.
“The option conversion gives the excellent Australian Vanadium team welcome support for the work they are undertaking to take this world-class vanadium deposit into production,” he added.
Gabanintha vanadium project
A definitive feasibility study has been kicked off at Australian Vanadium’s Gabanintha project with a pilot scale metallurgical program underway.
