Australian Vanadium Raises $20.57 Million To Advance Namesake Project In Western Australia

Australian Vanadium Ltd (ASX:AVL) has raised a total of $20.571 million through a share purchase plan (SPP) and placement to advance its namesake project in Western Australia.
The company’s latest SPP received total subscriptions of $571,000, supplementing the $20 million raised in the successful recent placement.
Funds raised will be used to finance ongoing work at the company’s Australian Vanadium Project and to develop key downstream markets ahead of finalising debt finance and a final investment decision.
SPP summary
The SPP complemented the recently completed $20 million placement to existing and new institutional, professional and sophisticated investors.
Under the SPP, a total of about 12.15 million new fully paid ordinary shares will be issued.
Shares will be allotted on June 23, 2022, with the shares proposed to commence trading on June 24, 2022.
New shares issued under the SPP will rank equally with AVL’s existing shares on issue.
Placement summary
AVL had undertaken a non-underwritten single tranche placement last month, of about 425.5 million new shares to raise $20 million (before costs).
New shares will be issued at an offer price of $0.047 per share, which represented a:
7.5% discount to the last closing price of AVL shares on ASX of $0.057 on May 17, 2022 (being the last day on which AVL shares traded before this announcement);
17.4% discount to the five-day volume-weighted average price (VWAP); and
22.2% discount on the 15-day VWAP.