Australian Vanadium Limited

Successful Implementation of AVL and TMT Merger

Australian Vanadium Limited (ASX:AVL) is pleased to announce the successful implementation of its merger with Technology Metals Australia Limited (ASX:TMT).


KEY HIGHLIGHTS

  • The merger of Australian Vanadium Limited (ASX: AVL, the Company or AVL) and Technology Metals Australia Limited (TMT) has been successfully completed.
  • The transaction consolidates two adjoining projects across one orebody, realising synergies through the advancement of a single integrated vanadium project.
  • Work underway focussing on concentrate quality and coproduct optimisation to unlock reduced capital and operating costs and realise higher revenue, maximising project economics and shareholder value.
LETTER FROM THE CHAIR OF THE BOARD AND CEO OF AVL

Dear AVL Shareholders

Today sees the successful implementation of the merger of AVL and TMT, with AVL acquiring all shares in TMT.1 On behalf of the Board of Directors and Management Team of AVL, we would like to welcome the shareholders of TMT to AVL’s register. We firmly believe that the merger of AVL and TMT will unlock material benefits for all shareholders through the consolidation of adjoining projects on one contiguous orebody, to create one of the largest and most advanced vanadium development projects in the world.

Today AVL, a critical and battery metal company based in Western Australia, accelerates its journey to become a global leader in the vanadium supply chain. We are all now shareholders in one stronger company and we look forward to delivering the combined benefits to all our shareholders.

Since the announcement of the transaction in September,2 AVL has been working diligently with the TMT team to integrate the two projects and to assess project enhancement opportunities and development strategies which can now be unlocked by the successful completion of the merger.

Wood Group has commenced work on an Optimised Feasibility Study (OFS). The first phase of the OFS, expected to be completed within the June quarter of 2024, will finalise trade off studies and inform the preferred project development pathway for the integrated project. We look forward to updating you on our progress as we advance the project to production.

Key actions include:

  • optimisation of mining and processing schedules with a focus on maximising concentrate quality and coproduct outcomes, maximising revenue and unlocking opportunities to reduce capital and operating costs;
  • rationalisation of plant and infrastructure to improve mine plan and capital cost; and
  • sharing of stakeholder relationships, technical knowledge, infrastructure and operating practices.

AVL remains committed to its strategic objective of developing a low operating cost vanadium project and delivering value to our shareholders and stakeholders through a profitable operation. Our immediate priorities, beyond the integration work, centre on:

  • finalising a combined mineral resource statement;
  • finalising funding and offtake for the combined project;
  • completing regulatory, environmental and permitting requirements; and
  • working with stakeholders to create a positive impact in our communities.

As we define the ideal integrated project development pathway, we will continue to engage actively with the Traditional Owners of the land where we operate, the Yugunga-Nya People, to collaborate on opportunities to reduce impact on their country and maximise benefit to their people.

The transaction significantly increases the Company’s capital market profile and strategic investor appeal, delivering greater scale, improved liquidity and providing a stronger balance sheet to position us well for the next phase of development activities. AVL has a unique opportunity to leverage compelling market fundamentals and improved investor sentiment to provide significant improvement in our ability to raise equity, secure project financing and agree desirable offtake arrangements and strategic partnerships.

The Company will also continue to assess downstream opportunities. This includes pursuing growth initiatives in the vanadium flow battery (VFB) market through our wholly owned subsidiary, VSUN Energy Pty Ltd, and operating our recently constructed vanadium electrolyte manufacturing facility in Western Australia.3 AVL’s long-term aim remains the pursuit of a pit-to-battery strategy for vanadium, with our intent to manufacture vanadium electrolyte using vanadium oxide from our project, demonstrating our commitment to onshore downstream processing and value-addition, while providing a large proportion of local content which is unrivalled by other battery technologies. We see inevitable growth in the VFB market as becoming central to domestic demand for vanadium.


Click here for the full ASX Release

This article includes content from Australian Vanadium, 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
Australian Vanadium

Australian Vanadium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Australian Vanadium

Australian Vanadium


Keep reading...Show less
Australian Vanadium CEO Graham Arvidson

Australian Vanadium, TMT Merger Boosts Project Economics, CEO Says

The merger between Australian Vanadium (ASX:AVL) and Technology Metals Australia (ASX:TMT) will enable both companies to simplify the strategic imperatives required to advance their vanadium assets, which are being combined, Australian Vanadium CEO Graham Arvidson explained.

“We're both pursuing advanced assets where we need offtake (and) financing, that's debt and equity, and we need to finalise our permitting. And all of that becomes a simpler story,” Arvidson said. "Actually bringing these tenements together offers opportunities as well to improve the economics of the assets."

The completion of the merger between Australian Vanadium and Technology Metals Australia has effectively created Australia's largest publicly traded vanadium developer.

Keep reading...Show less
Australian Vanadium

Australian Vanadium, TMA Merger Creates Australia’s Largest Vanadium Developer

The merger between Australian Vanadium (ASX:AVL) and Technology Metals Australia (ASX:TMT) has positioned the two companies as the largest publicly traded vanadium developer in Australia, according to a news report in PerthNow.

Keep reading...Show less
 Australian Vanadium Limited

Scheme of Arrangement has been Implemented

Advanced vanadium developer, Technology Metals Australia Limited (ASX: TMT) (Technology Metals, or the Company), provides the following update on the proposed merger of TMT and Australian Vanadium Limited (AVL) via Scheme of Arrangement (Scheme), under which AVL will acquire 100% of the TMT shares on issue.

Keep reading...Show less
 Australian Vanadium Limited

Quarterly Activities/Appendix 5B Cash Flow Report

Australian Vanadium Limited (AVL) is pleased to present its Quarterly Activities and Cash Flow Report.

Keep reading...Show less
  SUREFIRE RESOURCES NL

Surefire Develops a Breakthrough Process for Vanadium Extraction

Surefire Resources NL (“Surefire” or “the Company”) is pleased to announce it has achieved a breakthrough process of extracting Vanadium directly from magnetite concentrate out of its 100% owned flagship Victory Bore Vanadium project in Western Australia.

Keep reading...Show less

Largo Reports Fourth Quarter and Full Year 2023 Operational and Sales Results Highlighted by Record Quarterly High Purity V2O5 Production; Provides 2024 Guidance

All amounts expressed are in U.S. dollars, denominated by "$"

Q4 and FY 2023 Highlights

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
Australian Vanadium

Australian Vanadium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×