Australian Vanadium (AVL) has received firm commitments to raise $8.7 million through a share placement to advance its projects.
The placement of 348 million shares at 2.5 cents each was oversubscribed with more than $14 million worth of bids received.
The issue price represents an 11 per cent discount to the 15-day volume weighted average price and a 13.9 per cent discount to the company’s last closing price.
Every share issued will include one free attaching listed option.
The funds are set towards the completion and delivery of the bankable feasibility study for its Australian Vanadium Project in Western Australia as well as to prepare for the front end engineering design and project execution.
It will also assist in finalising the design to start building a vanadium redox flow battery electrolyte supply plant, which will be the first in Australia, through co-funding from the Australian Government.
AVL said the placement attracted interest from both existing shareholders and new investors, including new institutional cornerstone investors.
Managing Director Mr Vincent Algar said the strong demand for the placement supported the view that the company was now seen as the next global producer of vanadium based in Australia.
“The year ahead looks positive for vanadium in both steel and battery sectors,” he said.
“The funds raised through the placement puts the company in a strong financial position to deliver and realise further value for all stakeholders.”
The placement is anticipated to settle on Friday August 27.
Shares were trading 10.3 per cent lower at 2.6 cents at 11:03 am AEST.
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