Prominent global mining-focused alternative investment firm Resource Capital Funds (RCF) has demonstrated further confidence in the battery minerals strategy of Australian Vanadium Ltd (ASX:AVL) through a significant recent on-market purchase of AVL shares.
Substantial holder Resource Capital Fund VII LP now holds 6.37% of the Western Australian vanadium project developer, up from 5.35% due to the April 20 on-market purchase.
44 million shares bought
RCF acquired 44,126,510 AVL shares purchased on market with a value of $1,623,701.35, taking its holding to more than 277.55 million ordinary shares.
The April 20 purchase comes hot on the heels of RCF becoming a substantial holder on March 22, 2023, when the US-based resources investor acquired AVL shares valued at approximately $8 million for a 5.35% stake.
About RCF
RCF partners with companies to build strong and sustainable businesses that strive to produce superior returns to all stakeholders. It is organised around investment strategies aimed at providing capital throughout the development and capital structure risk spectrum.
At the time of the initial investment, AVL chairman Cliff Lawrenson said: “AVL has been working to attract larger strategic and financial investors to its register as it progresses the Australian Vanadium Project.
“We are delighted to welcome RCF as a substantial shareholder and we look forward to further developments on our register as we work towards securing funding for the project.”
Murchison region investments
The Australian Vanadium Project is one of the most advanced vanadium projects being developed globally, with a resource of 239 million tonnes at 0.73% vanadium pentoxide (V₂O₅) and an ore reserve of 30.9 million tonnes at 1.09%.
Investments by RCF will also support AVL’s plans to develop a commercial vanadium electrolyte manufacturing facility in Western Australia to support its strategy to become a vertically integrated ‘pit to battery’ vanadium producer.
A facility location has been secured, detailed design completed and long lead equipment ordered for the plant which will produce vanadium redox flow battery (VRFB) high-purity electrolyte.
Deliveries of the equipment are expected during the current quarter.
RCF also has a substantial holding in Technology Metals Australia Ltd (ASX:TMT) which has vanadium interests in the same Murchison region of WA as AVL.
READ: Technology Metals Australia welcomes further RCF investment in Murchison vanadium strategy
The US critical metals investor has a 17.2% stake in TMT having invested $13.5 million in the company.
TMT says that RCF’s investment in both companies demonstrates its positive outlook on the vanadium sector and supports the opportunity to create a world-class vanadium operation centred in the Murchison region.