21/08/2019 - 12:37

Australian Vanadium raises $3.5m, Volt $1.6m

21/08/2019 - 12:37

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Australian Vanadium has raised $3.5 million in capital to advance its vanadium project near Meekatharra, while Volt Resources has raised $1.6 million to fund the development of its Bunyu graphite project in Tanzania.

Australian Vanadium raises $3.5m, Volt $1.6m
Vincent Algar says the funds will be used for the development of the company’s Mekatharra mine.

Australian Vanadium has raised $3.5 million in capital to advance its vanadium project near Meekatharra, while Volt Resources has raised $1.6 million to fund the development of its Bunyu graphite project in Tanzania.

Australian Vanadium announced an underwritten share purchase plan, with Patersons Securities acting as lead manager and underwriter to the offer.

The new shares will be issued at 1.15 cents per share to eligible shareholders, equivalent to an 18.8 per cent discount to the volume-weighted average over the five trading days before August 21.

Australian Vanadium managing director Mr Vincent Algar said the funds would be used for the development and longevity of the company’s vanadium mine.

“The additional funds delivered through the share purchase plan will enable the company to complete the definitive feasibility study, commence the front end engineering and design process, update the resource and reserve with a view to extending the defined minelife, as well as continuing the negotiation of off-take agreements and other key project licences and approvals,” he said.

“The board wanted to ensure that all shareholders were offered the opportunity to participate in the capital raising process, as the company enters an active period ahead.”

The company said Patersons may also facilitate a top-up placement to raise a further $4 million.

Meanwhile, Tanzania-focused graphite exploration group Volt Resources has raised $1.3 million through a closed oversubscribed share purchase plan and $350,000 through a top-up placement, bringing the total to $1.65 million.

Volt chairman Asimwe Kabunga supported the placement with a $100,000 investment.

Patersons Securities acted as lead manager and underwriter to the plan and as lead manager to the placement.

Volt chief executive Trevor Matthews said the company was pleased with the level of support for the share purchase plan and subsequent top-up.

“Importantly, this funding allows the company to reduce its short-term debt and to advance its development funding initiatives that, once executed, will very quickly see work on the stage one development of our Bunyu project get under way,” he said.

“We remain committed to securing our stage one development capital in the near term.”

Volt said the funds raised would be used to repay outstanding loans from Riverfort Global Capital and Yorkville Advisors, and for general working capital and corporate purposes.

The share purchase plan and placement of new shares will be issued on August 23 at a 20 per cent discount to the volume weighted average price traded on the ASX between August 16 and 22.

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