Australian Vanadium Limited (ASX:AVL, “the Company” or “AVL”) is pleased to announce the successful completion of its institutional placement (“Placement”) of new fully paid ordinary shares (“New Shares”) to raise A$15.7 million as announced on Monday, 25 September 20231.
The Placement was strongly supported by Resource Capital Fund VII LP (RCF), as well as from other institutional investors. Approximately 603 million New Shares are being issued under the Placement at a fixed price of A$0.026 per New Share.
Proceeds from the Placement will be applied to support initiatives involved with the integration strategy associated with the announced merger between AVL and Technology Metals Australia Ltd (TMT)1, fund ongoing project and corporate initiatives, general working capital and offer costs.
AVL Chief Executive Officer, Graham Arvidson, said: “We are pleased with the strong support shown by RCF and other investors for the Placement. Following the announced merger with TMT earlier this week, receiving this support is a positive endorsement of AVL’s strategy and team, but also highlights the growing investor interest in the vanadium thematic which continues to benefit from the clean energy transition and ongoing electrification of energy supplies requiring storage solutions. The Placement ensures that the combined group will be well-funded to progress its integration strategy between AVL and TMT as well as the go-forward development strategy, and we are excited by the future opportunities”.
The trading halt is expected to be lifted prior to market open today and settlement of the Placement is expected on Friday, 29 September 2023. The New Shares will rank equally with existing AVL shares on issue.
Macquarie Capital (Australia) Limited and Canaccord Genuity (Australia) Ltd are acting as Joint Lead Managers & Joint Bookrunners to the Placement.
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