- Technology Metals (TMT) reports some 26 per cent of its shareholder base support a proposed merger with Australian Vanadium
- TMT’s largest holder is Resource Capital Funds and that entity has already voiced support with its 18 per cent holding
- Now Regal Funds Management, Atasa Holdings and Tribeca Investment Partners have pitched support
- The two companies want to jointly develop a vanadium project in north WA near Meekatharra
- Both players want to develop Vanadium-based long duration grid-scale storage batteries
- TMT shares last traded at 29.5 cents
Technology Metals Australia (TMT) has announced that 26 per cent of its shareholder base has, so far, submitted statements to the company in support of its proposed merger with Australian Vanadium (AVL).
The company’s largest shareholder, Resource Capital Funds, holding approximately 18 per cent, had already expressed its support for the deal earlier this week.
Now, more firms have joined in support. These include Regal Funds Management (with a 4.7 per cent interest in TMT), Atasa Holdings (1.7 per cent), and Tribeca Investment Partners (1.3 per cent).
“It is very encouraging that TMT’s largest institutional shareholders are supportive of the proposed merger with AVL,” TMT Managing Director Ian Prentice said.
“Similar to the TMT management team and Board, these shareholders recognise the significant benefits through the consolidation of these contiguous orebodies and technical teams.
“TMT now has voting intention statements from shareholders (including RCF) representing approximately 26 per cent of TMT shares on issue which demonstrates the strong support for the proposed merger with AVL.”
The proposed merger, announced on Monday with a value of $217 million, is set to enable both companies to leverage their resources for better exploitation of a jointly held vanadium project near Meekatharra in WA’s north.
Both companies are eyeing the long-duration battery storage market. While lithium-ion batteries are already used in some large battery projects in Australia, their composition increases the risk of fires.
This is an undesirable trait for a climate change decarbonisation technology expected to be in use for decades on a planet with rising temperatures.
Enter vanadium redox flow batteries (VRFB). This type of battery poses less fire risk in operating contexts, and designers also claim superior performance over lithium-ion.
Crucial to their durability is the fact that these batteries can operate in higher temperatures than lithium-ion if built to withstand them.
“The combination of Australian Vanadium and Technology Metals Australia is transformational for both companies and marks a significant milestone in both management teams’ efforts to develop their respective projects,” Australian Vanadium CEO Graham Arvidson said on Monday.
TMT shares last traded at 29.5 cents.