Australian Vanadium Ltd (ASX:AVL) is moving closer to the divestment of its non-core Western Australian copper, nickel, PGE and uranium assets into Mining Green Metals Ltd with MG1’s Initial Public Offering (IPO) now open.
MG1 has lodged its IPO prospectus dated March 2, 2023, with the Australian Securities and Investments Commission (ASIC) and the general offer is open.
Pending a successful IPO and listing on the ASX, AVL will retain a significant shareholding of 11.24% in MG1 and AVL shareholders will be entitled to participate in a priority offer.
Focused on integrated strategy
MG1’s proposed listing will allow AVL to fully focus on the development of the flagship Australian Vanadium Project at Gabanintha, construction of a vanadium electrolyte plant and on vanadium battery market growth through its subsidiary VSUN Energy.
This project is one of the most advanced vanadium projects being developed globally with a JORC-compliant resource of 239 million tonnes at 0.73% vanadium pentoxide (V₂O₅).
Within this is a high-grade zone of 95.6 million tonnes at 1.07% V₂O₅ and an ore reserve of 30.9 million tonnes at 1.09% V₂O₅ comprising a proved reserve of 5 million tonnes at 1.11% and a probable reserve of 20.4 million tonnes at 1.07%.
Critical minerals focus
MG1’s IPO will create a dedicated ASX-listed critical minerals-focused vehicle for the exploration of minerals for the energy transition.
Its initial exploration assets are considered prospective for nickel, lithium, copper, platinum group elements and uranium.
The IPO is intended to raise $5 million at an issue price of $0.20, subject to regulatory approvals.
Eligible AVL shareholders will be entitled to participate in a priority offer of up to an aggregate of 10 million shares with each entitled to a minimum of 10,000 shares and up to 500,000 shares.
Shareholders will receive electronic or physical priority offer letters from March 14 onwards.
About AVL and VSUN
AVL is a resource company focused on vanadium, seeking to offer investors a unique exposure to all aspects of the vanadium value chain – from resource through to steel and energy storage opportunities.
VSUN Energy is AVL’s 100%-owned renewable energy and energy storage subsidiary which is focused on developing the Australian market for vanadium redox flow batteries for long-duration energy storage.
VSUN Energy was established in 2016 and is widely respected for its VRFB expertise.
AVL’s vertical integration strategy incorporates processing vanadium to high purity, manufacturing vanadium electrolyte and working with VSUN Energy as it develops projects based on renewable energy generation and VRFB energy storage.