Global Vanadium Updates On Sale Of Its Southern Georgina Project
Global Vanadium Limited (ASX: GLV), based out of Subiaco, Australia, explores for and develops oil and gas properties in Australia. It wholly-owns the EP-127 permit situated in Northern Territory’s Southern Georgina Basin.
With around 2.83 billion outstanding shares, the GLV stock closed the market trading at AUD 0.003 with around 8.05 million shares traded on April 29th, 2019, when the suspension of trading (imposed on April 26th, 2019) in the securities of Global Vanadium Limited was lifted at the commencement of trading. This followed the release of an announcement by the company regarding negotiations of a potential acquisition of an Africa based vanadium project.
Subsequent to an announcement on April 2nd, 2019, the company recently informed that it is yet to obtain the shareholders’ approval pursuant to Listing Rule 11.2 concerning the proposed sale of its 100% owned Exploration Permit 127, the Southern Georgina Project. The company would prepare and dispatch a Notice of Meeting to seek the same as soon as practicable (expected to be dispatched in the coming weeks).
On March 28th, 2019, the company announced to have entered into an agreement with Westmarket Oil & Gas Pty Ltd which would acquire 100% interest in EP127, at a total value consideration of AUD 1,500,000 on completion of the transaction. This would include a cash consideration of AUD 500,000, stock consideration of AUD 1,000,000 and a royalty amount of 1% for a period of five years.
Meanwhile, the Australian Securities Exchange has in its recent update determined that the Southern Georgina Project is the Company’s main undertaking. Accordingly, the Company had to temporarily end its negotiations with parties on the previously announced, acquisition of an African based Vanadium Magnetite Project and further high-grade vanadate project, given that as per ASX, these acquisitions would trigger full re-compliance with Chapters 1 and 2 of the ASX listing rules in their current form.
Currently, Global Vanadium is continuing to liaise with ASX to figure out the appropriate deal transactions that can be structured moving forward. Regardless, the Company will continue to progress with its current assets and review new project opportunities to maximise shareholder value.
On April 23rd, 2019, the company updated the shareholders on the development of negotiations on its Philippines Iron Sands Vanadium-Magnetite Project. Global Vanadium’s investment in the project at present time, is through loan advances to Consolidated Iron Sands Limited (CIS) or its Philippine’s based subsidiary, Luzon Iron Development Group Corporation (LIDGC), under a Secured Loan Agreement entered into in 2012 (and varied in 2014) by Global’s wholly owned subsidiary Goldfleet Enterprises Pty Ltd and CIS.
CIS, via LIDGC, holds Exploration Permits for two offshore areas between Sanchez Mira and Gonzaga, which are required to be renewed since August 2018 by the Philippines Mines and Geosciences Bureau (MGB). However, on April 19th, 2019, the company was disappointed on being informed by the Directors of CIS that the renewal had been denied by the MGB.
Global Vanadium reported a net loss after income tax of around $ 1,233,227 for the half-year period ended December 31st, 2018. The company closed the period with cash and cash equivalents of around $468,774.
www.ferroalloynet.com
