Australian Vanadium

$49 Million Government Grant Agreement Executed

Collaboration grant agreement to support the development of the Australian Vanadium Project.

Further to the Company’s announcement on 16 March 20221, Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to advise that AVL and the Commonwealth of Australia, represented by the Department of Industry, Science and Resources, have executed a Commonwealth Grant Agreement (“the Agreement”) as part of the Modern Manufacturing Initiative - Manufacturing Collaboration Stream (“the Grant”).


KEY POINTS

  • AVL and the Commonwealth have executed a grant agreement under the Modern Manufacturing Initiative – Manufacturing Collaboration Stream.1
  • The Agreement provides a grant of $49 million to support the Australian Vanadium Project.
  • The Australian Vanadium Project is one of the most advanced critical mineral vanadium projects being developed globally, with the potential to produce 11.2kt per annum of vanadium pentoxide over a 25+ year mine life.2

The Grant provides up to $49 million in funding support for the Australian Vanadium Project (“the Project”) to assist the Company, in collaboration with industry partners, to create an Australian vanadium battery industry. The Grant funds eligible activities to construct and commission a concentrator and high-purity vanadium processing facility capable of using green hydrogen as part of the extraction process for the Project. This critical mineral extraction process is a key precursor for vanadium electrolyte manufacturing. The scope of the Grant encompasses support for all stages of the vanadium production value chain, from mining and concentrating to vanadium processing for use in electrolyte production, a key enabler for the Australian vanadium redox flow battery industry. As part of the activities under the Grant, AVL will also collaborate with Bryah Resources Limited (ASX: BYH) to explore options to extract cobalt, nickel, copper and gold economically from the Project.3 Broader activities needed to realise the overall Project, such as development of the mine and supporting infrastructure, will be funded from sources other than the Grant.

CEO, Graham Arvidson comments, “AVL has been working closely with the Australian Government and we are pleased to announce execution of the Agreement. The Grant will be of great benefit to AVL as we seek to optimise and finalise our financing and offtake arrangements and continue to move the Project forward for the benefit of the mid-west region of Western Australia, and Australia more broadly. We are very grateful to the Australian Government and the grant team who worked tirelessly to finalise this important outcome.”

The Agreement has a commencement date of 29 May 2023 and ends on 31 July 2026.

The Grant will be be paid progressively over the term of the Agreement, subject to milestones and compliance by the Company with its obligations under the Agreement. An initial payment of $9.8 million is scheduled to be received by the Company in June 2023, followed by three further payments, with the final payment scheduled for August 2025.


Click here for the full ASX Release

This article includes content from Australian Vanadium Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

AVL:AU
The Conversation (0)
Vanadium periodic symbol.

Australian Vanadium Gets AU$2.63 Million Government Refund for R&D Work

Australian Vanadium (ASX:AVL,OTC Pink:ATVVF) announced on Tuesday (August 13) that it has received AU$2.63 million by way of the Australian government’s Research & Development (R&D) Tax Incentive Scheme.

The refund amount was granted for R&D completed in the 2022/2023 tax year by Australian Vanadium and Technology Metals Australia, with AU$1.79 million and AU$0.84 million coming from their respective submissions.

The two companies announced plans to merge in 2023, and completed the transaction earlier this year.

Keep reading...Show less
Magnifying glass looking at vanadium periodic symbol.

Vanadium Market Update: H1 2024 in Review

Vanadium saw a price bump in January on hopes that China's property sector would prop up demand, but that positivity began to erode during the first half of the year as consumption remained weak.

Willis Thomas, head of CRU+, said that in January prices were 5 percent higher than December’s average, reaching 91,167 renminbi per metric ton (MT) delivered at place (DAP), or US$12,766.16.

“However, since this pre-New Year’s bump, policies introduced this year have so far failed to revive demand in the property sector, and the downward trend on pricing has continued along with structurally weak demand for finished long steel products,” he told the Investing News Network (INN) via email.

Keep reading...Show less
Stock screener on phone.

Velox Announces ASX Dual Listing, Gets Vanadium Project Support from Queensland Government

Exploration-stage Velox Energy Materials (TSXV:VLX) publicized plans to dual list on the ASX in a press release shared on August 2, saying it's aiming to raise AU$8 million to AU$10 million in the process.

The vanadium-focused company also said it has secured a "cornerstone investment" commitment from the QIC Critical Minerals and Battery Technology Fund, which is managed and administered by QIC.

“With our flagship North Queensland Vanadium Project (NQVP) and Kotai Hydrogen Project both based in Australia, it is logical that we would seek to gain further exposure to Australian investors via a proposed dual listing on the ASX,” Simon Coyle, president and CEO of Velox, commented in last week's announcement. “We are extremely excited to have a QIC-managed fund as a cornerstone investor in the proposed dual listing capital raise.”

Keep reading...Show less
Aerial view of digger.

Vecco Vanadium and Critical Minerals Site Gets “Coordinated Project” Status

Queensland Coordinator-General Gerard Coggan has declared the AU$798 million Vecco critical minerals asset a “coordinated project,” paving the way for the environmental approval process.

Coggan made the announcement in a July 11 release, saying that Vecco Industrial, the owner of the property, will be required to produce an environmental impact statement (EIS) for the project.

Vecco is a greenfield site that Vecco Industrial plans to develop into a mine that will produce vanadium pentoxide, high-purity alumina and molybdenum trioxide. Located in Queensland’s Critical Minerals Zone, the project spans 3,534 hectares and is approximately 70 kilometres north of Julia Creek and 515 kilometres west of Townsville.

Keep reading...Show less

Largo Announces Annual General Meeting Extension

Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) today announces that the Company has received approval from the Toronto Stock Exchange (" TSX ") to extend its Annual General Meeting of Shareholders (the " Meeting ") to Monday, July 29, 2024, at 10:00 a.m. ET. The Meeting will be held at the offices of Stikeman Elliott LLP, 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario, M5L 1B9, Canada. Without TSX approval, the Company's annual meeting must be held by June 30 each year.

The Meeting is being held for the following purposes:

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×