Advancing towards its production goals, Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has signed an option agreement to purchase land for its processing plant at Tenindewa, 60 kilometres from the port city of Geraldton in Western Australia.
The new agreement allows AVL to subdivide and purchase a portion of the land under option, in order to locate and construct a vanadium processing plant, subject to planning approvals.
Notably, the site’s location enables the utilisation of existing natural gas, water, road, rail and power infrastructure as the company progresses its ‘pit to battery’ strategy.
Towards production
AVL CEO Graham Arvidson said: “AVL is pleased to have worked with the landowners of the Tenindewa processing plant location to establish an option agreement which benefits both parties.
“We continue to progress our ‘pit to battery’ strategy as we move the Project towards production.”
Proposed location of processing plant.
Agreement summary
The new option agreement relates to an area of 1,334 acres, with a purchase price of $4,000 per acre, reflecting current market prices in the region.
Under the agreement, AVL is granted a licence to access the option land immediately for drilling, engineering, surveying and excavation.
It also contains provisions allowing AVL to lease back to the landowner those parts of the option land that AVL does not intend to use for the project or to sell back the option land to the landowner at the purchase price in certain circumstances.
About the project
The project’s mine site is about 40 kilometres south of the mining town of Meekatharra in Western Australia.
AVL will undertake crushing, milling and beneficiation of vanadium-bearing magnetite ore at the mine site location.
Subsequently, the resulting ore is transported to the proposed processing plant near Geraldton, where final refinement to high-quality, high-value vanadium products and an iron-titanium coproduct will take place.
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