The proposed $217 million merger between Technology Metals Australia Ltd (ASX:TMT) and Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has received support from TMT's largest shareholders, representing about 26% of the company shares on issue.
TMT's largest shareholders have provided written statements to confirm their intention to vote in favour of the deal, subject to no other superior proposals emerging in the meantime.
READ: Australian Vanadium and Technology Metals Australia to consolidate vast vanadium orebody with A$217 million merger
Yesterday, the companies announced a proposal to consolidate two adjoining projects over the Gabanintha vanadium orebody in Meekatharra, which will see the emergence of a leading Australian vanadium developer with a world-class asset of scale in Western Australia, long considered a Tier-1 mining jurisdiction.
The latest shareholders to provide written statements of support include:
- Regal Funds Management (with 12,042,858 shares representing a 4.7% interest in TMT);
- Atasa Holdings Pty Ltd (with 4,343,995 shares representing a 1.7% interest in TMT); and
- Tribeca Investment Partners Pty Ltd (with 3,200,000 shares representing a 1.3% interest in TMT).
Accelerating development
“It is very encouraging that TMT’s largest institutional shareholders are supportive of the proposed merger with AVL,” TMT managing director Ian Prentice said.
“Similar to the TMT management team and board, these shareholders recognise the significant benefits through the consolidation of these contiguous orebodies and technical teams.
“TMT and AVL believe the merger will help accelerate the development of the combined project to the benefit of both sets of shareholders.
“TMT now has voting intention statements from shareholders, including RCF, representing approximately 26% of TMT shares on issue, which demonstrates the strong support for the proposed merger with AVL.”