The announcement made by the company states the development of the grid level energy storage market didn’t meet expectations, meaning the company is of the view the Gibellini deposit will not have enough value as a supply of vanadium in the future.
As a result, the company has discontinued developing and permitting the Gibellini property. Furthermore, one of the primary Gibellini leases returned to its owner.
This means unless American Vanadium is able to negotiate terms to re-acquire the lease, the company may cease to keep other leases requiring annual payments by December 31, 2016, with claims expiring August 31, 2016 in the area, and they will no longer have a vanadium mine.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.