Aus Vanadium raises $6.2m

West Perth-based Australian Vanadium has raised nearly $6.2 million from the recent exercising of approximately 204.6 million options.

In a statement to the ASX , the company said 264 of its shareholders converted their options to shares at a cost of 2 cents each in December, with only about 32 million options remaining unexercised.

In addition, 62.75 million options were underwritten by Westar Capital, raising $1.255 million before costs.

The conversion boosted AVL’s cash balance to $9.7 million, and the company said the funds would be used to complete the definitive feasibility study of its Gabanintha vanadium project.

The project is located approximately 43 kilometres south-east of Meekatharra, and hosts a total resource of 183.6 million tonnes at 0.76 per cent vanadium pentoxide, including a high-grade zone of 96.7mt at 1 per cent vanadium pentoxide.

In December, AVL realised its final pre-feasibility study on the project, which estimated a post-tax net present value up to $US1.41 billion (approximately $1.97 billion).

AVL managing director Vincent Algar said starting 2019 with a healthy cash balance would enable the company to move swiftly forwards with its plans for the Gabanintha vanadium project.

“Timelines can now be accelerated, and we are confident that we have a solid basis to inspire confidence in prospective investors and project partners,” he said.

“The option conversion gives the excellent AVL team welcome support for the work they are undertaking to take this world-class vanadium deposit into production.”

Shares in AVL finished 4.55 per cent up 2.3 cents each at the close of trade.