Richmond Vanadium Technology, owner of one of the largest undeveloped vanadium oxide projects in the world, is set to list on the ASX after lodging its prospectus for an initial public offering (IPO).
The company is offering between 62,500,000 and 87,500,000 shares at an issue price of $0.40 per share to raise between $25 million and $35 million.
The funds from the IPO will be used to deliver the bankable feasibility study for the Richmond vanadium project in north Queensland, in addition to investment in Ultra Power Systems, ongoing operating costs, general administration and working capital.
Richmond Vanadium owns 100 per cent of its namesake project, which boasts a mineral resource of 1.8 billion tonnes at 0.36 per cent for 6.7 million tonnes of vanadium oxide. This makes Richmond Vanadium one of the largest undeveloped vanadium oxide resources in the world.
A pre-feasibility study demonstrated Richmond Vanadium’s potential as a technically viable and financially attractive development project, based on a battery metal that is becoming more and more important in the renewable energy transition.
Australia and the US have vanadium on their ‘critical mineral’ lists, while China, Brazil, Russia and South Africa account for the majority of worldwide production. While Australia holds approximately 18 per cent of the world’s vanadium, the country doesn’t currently mine the resource.
Vanadium is used in many different industries to make things stronger, lighter, more efficient and more powerful. Most vanadium consumption (up to 92 per cent) is ferrovanadium (a mixture of iron and vanadium) which is used to significantly increase the strength and hardness of steel.
Richmond Vanadium managing director Shaun Ren said it was a huge achievement for the company to lodge its prospectus.
“This IPO is an important step in the evolution of Richmond Vanadium Technology as development of the Richmond Vanadium project moves into the bankable feasibility study phase,” he said.
“Our IPO comes at an ideal time with the emergence of the vanadium sector which continues to grow in prominence due to the critical mineral’s use in vanadium redox flow batteries.
“As investors increasingly embrace the global push for carbon neutrality, we are proud and excited to provide this opportunity for them to share in the potential of this project and the promising future ahead for vanadium.”