A merger between two Western Australian vanadium development companies will create a powerful, globally relevant business developing materials used in the burgeoning market for vanadium redox flow batteries (VRFBs).
Australian Vanadium Limited (AVL) and Technology Metals Australia are to merge, bringing together their adjoining mining leases at Gabanintha, south of Meekatharra in Western Australia, where AVL will undertake crushing, milling and benefaction of magnetite ores.
The resulting concentrate would be transported to Mullewa near the port of Geraldton where Australian Vanadium will produce vanadium pentoxide (V2O5) suitable for the critical mineral and battery market.
Australian Vanadium has been awarded a $49 million grant from the federal government’s Modern Manufacturing Initiative Collaboration Stream to support the manufacture of VRFB electrolyte.
VRFB batteries are heavier but more energy dense than lithium in batteries, with their heavier weight making them suitable for remote locations. The electrolyte is also infinitely recyclable.
Following the merger AVL shareholders will hold 58 percent of the merged company, with TMT shareholders holding 42 percent.
Ms Jo Gaines will join the AVL board from TMT, and Ian Prentice will join the AVL executive team.
Australian Vanadium CEO Graham Arvidson said: “The transaction will leverage the best of both organisations, including best in class technical work, assets and people, and will result in AVL becoming the leading force in the Australian vanadium sector.”
Australian Vanadium also announced today it had completed a $15.7 million capital raising via a placement to fund the support the companies’ integration strategy.
The raising was strongly supported by Resource Capital Fund as well as other institutional investors.
Arvidson said: “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 future opportunities.”
Browse @AuManufacturing’s coverage of Australian Vanadium here.
Australian Vanadium backed to produce critical battery materials
Picture: Australian Vanadium/pilot plant operation