Australian Vanadium Ltd. raised A$6.6 million through a share purchase plan and a top-up placement of new shares at 1.15 Australian cents per share.
The company said Sept. 23 that it received applications from 13% of eligible shareholders under the share purchase plan for a total of A$5.2 million, with the placement raising a further A$1.4 million. Shares are scheduled to be issued Sept. 26.
Australian Vanadium will use the funds to advance its namesake vanadium project in Western Australia. Plans including completing a definitive feasibility study and further infill drilling to extend the life of the mine, estimated at 17 years.
The company said the funding will also allow its VSUN Energy subsidiary to advance opportunities for the sale and deployment of vanadium redox flow batteries.
Managing Director Vincent Algar said the company is in "very positive" discussions regarding potential off-take, finance and joint venture deals for the project.
The Australian government recently granted the Australian vanadium project major project status.
A December 2018 pre-feasibility study on the project outlined an after-tax net present value of US$1.41 billion, discounted at 8%, and a 47.5% internal rate of return.
