Australian Vanadium (AVL) has entered a mid-week trading halt pending an upcoming capital raising.
AVL will remain in the halt until May 20 or when further details are released to the market, whichever occurs first.
The company is yet to disclose how much it intends to raise or what it will use the funds for once received.
On May 11, AVL signed an option agreement with Mining Green Metals (MGM) to sell its Coates Project and Nowthanna Hill Project tenements in Western Australia.
Under the agreement, AVL will receive 6.5 million shares in MGM, a cash payment of $190,000 and a 0.75 per cent net smelter royalty.
MGM has one year to decide if it wants to go through with the deal.
AVL last tapped investors for cash in August 2021 when it undertook an $8.7 million placement.
A total of 348 million shares were on offer at a price of 2.5 cents and was oversubscribed with more than $14 million worth of bids received.
AVL stated it would use the funds to complete and deliver the bankable feasibility study for its Australian Vanadium Project and prepare for the front end engineering design and project execution.
Shares in AVL last traded at 5.7 cents on May 17. The company has a $197.8 million market cap.
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