Australian Vanadium (AVL) and Technology Metals Australia (TMT) have agreed to a A$217 million merger, consolidating control over the Gabanintha vanadium orebody in Meekatharra, WA.
Vanadium can be used to make steel alloys for a variety of aerospace, military, and energy purposes. It’s also an integral part of vanadium flow batteries (VFBs), which are storage solutions for renewable energy.
The merger between AVL and TMT will consolidate two adjoining projects on the Gabanintha orebody, streamlining studies and growth efforts.
AVL’s standalone project is one of the world’s most advanced vanadium projects, with the potential to produce 11,200 tonnes per annum of vanadium pentoxide.
The combined mineral resources of the two projects represents a life of mine in excess of 25 years with the potential for future growth.
AVL chief executive officer Graham Arvidson said the merger was transformational for both companies.
“The logical consolidation of two adjoining projects on the same orebody will unlock material synergies for both sets of shareholders,” Arvidson said.
“If successful, the transaction will create the leading ASX listed vanadium developer and a world-class asset of scale located in a Tier-1 mining jurisdiction.”
If the merger is approved by shareholders, AVL will acquire 100 per cent of TMT shares, with TMT shareholders receiving 12 AVL fully paid ordinary shares for every TMT share held.
AVL will conduct an institutional placement to raise A$15 million to fund ongoing project and corporate initiatives during the transaction period.
TMT managing director Ian Prentice said the merger could create the world’s next primary vanadium producer.
“We are excited to be proposing the consolidation of the Gabanintha orebody, arguably one of the best undeveloped vanadium resources in the world,” Prentice said.
“This all comes at a pivotal time … as VFBs 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.”