Published: October 3, 2023 |

[Click image to enlarge]

[Click image to enlarge]

Australian Vanadium (AVL), which operates the Australian vanadium project, has signed a binding scheme implementation deed (SID) to merge with Technology Metals Australia (TMT).

AVL will fully acquire TMT, under a scheme of arrangement, subject to the satisfaction of certain conditions.

Under the terms of the agreement, TMT shareholders will the Australia-based mineral exploration company receive 12 AVL shares for every TMT share held, which implies an offer price of A$0.324 per TMT share, totaling $139 million (A$217 million).

The merger will consolidate two adjoining projects across one orebody and facilitate the operational and corporate synergies by creating a single integrated project.

The combined company will become a large-scale vanadium developer in Australia.

“The combination of Australian Vanadium and Technology Metals Australia is transformational for both companies and marks a significant milestone in both management teams’ efforts to develop their respective projects,” said AVL CEO Graham Arvidson.

“The logical consolidation of two adjoining projects on the same orebody will unlock material synergies for both sets of shareholders. If successful, the transaction will create the leading vanadium developer and a world-class asset of scale located in a tier 1 mining jurisdiction,” added Arvidson.

AVL will conduct an institutional placement to raise A$15 million to finance the ongoing project and corporate initiatives during the transaction period.

AVL shareholders will hold around 58 percent of the combined company and TMT shareholders around 42 percent of the combined company.

The transaction will provide tangible benefits including operational and corporate synergies, enhanced project economics and expansion optionality.

It will consolidate two adjoining projects with a combined mineral resource base representing over 25 years of mine life with opportunities to further extend and expand mine life.

The merger will optimize mine processing schedules, including product blending opportunities, project infrastructure, and capital costs.

“We are excited to be proposing the consolidation of the Gabanintha vanadium orebody, arguably one of the best-undeveloped vanadium resources in the world,” said TMT Managing Director Ian Prentice.

“This all comes at a pivotal time for the global vanadium industry as vanadium flow batteries are established as a critical player in the long-duration energy storage market, a key requirement for the world’s transition to net zero and a cleaner future,” added Prentice.

“We very much appreciate our major shareholder RCF’s demonstrable support for the vanadium thematic and the development of this world-class asset,” concluded Prentice.

Source: NS Energy

Australian Vanadium is a resource company focused on vanadium, seeking to offer investors a unique exposure to all aspects of the vanadium value chain — from resource through to steel and energy storage opportunities. AVL is advancing the development of its world-class Australian Vanadium Project at Gabanintha. VSUN Energy is AVL’s 100 percent owned renewable energy and energy storage subsidiary which is focused on developing the Australian market for vanadium flow batteries for long duration energy storage. VSUN Energy was set up in 2016 and is widely respected for its VFB expertise. AVL’s vertical integration strategy incorporates processing vanadium to high purity, manufacturing vanadium electrolyte and working with VSUN Energy as it develops projects based on renewable energy generation and VFB energy storage.

Technology Metals Australia Limited is a future-oriented company focused on the development of its flagship, 100 percent owned Murchison Technology Metals Project (MTMP), which is expected to meet global demand for high-purity vanadium, increasingly recognized as a critical mineral around the world. TMT’s vision is to be a leader in the Australian and international vanadium industry playing a crucial role in meeting a growing demand for a critical metal that helps the world to decarbonize.

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