The Gabanintha Project contains 5.5 kilometres in strike length of high grade mineralised gabbro and is one of the highest-grade vanadium deposits in the world.

Technology Metals Ltd (ASX:TMT) is in a trading halt with an announcement pending in connection with a preferred supplier agreement for the Gabanintha Vanadium Project near Meekatharra, Western Australia.

The trading halt will be in place until the beginning of regular ASX trade on Wednesday, June 24, or when an announcement is released to the market, whichever occurs earliest.

Shares last traded at 17 cents and are up from 6.9 cents at the close on April 16.

More than $2 million raised

TMT recently completed a placement of almost 13.7 million shares at a price of 15 cents per share to raise more than $2.054 million before costs.

Participants of the placement also received a 1 for 2 free attaching option exercisable at 25 cents on or before June 15, 2022.

Funds raised will be spent towards progressing development of the Gabanintha Vanadium Project, including advancing environmental work in support of the preparation of an Environmental Review Document (ERD) as well as for general working capital.

Drilling required to fully evaluate the good quality water source identified in a paleochannel to the northwest of the processing facility prior to submission of the ERD is expected to start early in the September quarter.