- Australian Vanadium (AVL) is raising up to $27.5 million to help advance its namesake project in WA
- The company will issue over 425 million shares at 4.7 cents to private investors to raise $20 million through a placement
- AVL will seek to raise an extra $7.5 million through a share purchase plan, allowing eligible shareholders to apply for up to $30,000 worth of shares
- Managing Director Vincent Algar says the capital raise means the company is well funded to implement the next phases of development for the Australian Vanadium Project
- Company shares are down 14 per cent to trade at 4.9 cents at 11:01 am AEST
Australian Vanadium (AVL) is looking to raise up to $27.5 million to help fund the development of its namesake project in WA.
The company received firm commitments from institutional, professional and sophisticated investors to raise $20 million through a placement.
AVL will issue roughly 425.5 million shares at 4.7 cents to the investors, representing a 17.5 per cent discount to its last closing price and a 22.2 per cent discount to its 15-day volume-weighted average price.
The materials stock will also launch a share purchase plan (SPP) to raise up to $7.5 million. Eligible shareholders will be able to apply for up to $30,000 worth of new shares at the same price as the placement.
The SPP will be open from May 26 until June 16, with the SPP shares to be issued on June 23.
Managing Director Vincent Algar said he was “extremely pleased” with the support received for the capital raise.
“The funds raised through the placement and the SPP will ensure that the company remains well funded while we implement the next phases of the development program for the Australian Vanadium Project,” Mr Algar said.
The company will allocate around $15.5 million towards its project development and $4 million on the engineering and construction of an electrolyte plant, standalone power system and residential vanadium redox flow battery.
The remaining funds will go towards business development, ultra-high purity vanadium integration and working capital.
Company shares were down 14 per cent to trade at 4.9 cents at 11:08 am AEST.