Richmond Vanadium Technology (proposed ASX code: RVT) reports that its initial public offering (IPO) to raise up to $35 million is now open.
The Australian minerals exploration company, which is focused on advancing its Richmond Vanadium Project in North Queensland, is offering a minimum of 62.5 million fully paid ordinary shares and a maximum of 87.5 million shares at an issue price of $0.40 per share to raise between $25-35 million.
The company owns 100% of the project following Horizon Minerals (ASX:HRZ) completing a restructure of its 25% interest in the project.
Richmond Vanadium Technology reports there is a priority offer to eligible Horizon Minerals shareholders of up to 25% of the shares offered under the prospectus at the same issue price of $0.40, and also includes a broker firm offer.
Following closure of the offer, the company aims to list on the Australian Securities Exchange (ASX) at the end of November 2022.
The funds raised in the IPO will primarily be used to deliver the Bankable Feasibility Study (BFS) for the Richmond Vanadium Project, in addition to ongoing operating costs; investment in privately held Ultra Power Systems (UPS), general administration, and working capital.
The Richmond Vanadium Project is one of the largest undeveloped oxide vanadium resources in the world with a Mineral Resource (JORC 2012) of 1.8 billion tonnes
The Richmond Vanadium Project is one of the largest undeveloped oxide vanadium resources in the world with a Mineral Resource (JORC 2012) of 1.8 billion tonnes @ 0.36% for 6.7 million tonnes V2O5. The Queensland government declared the project to be a ‘coordinated project’ in May 2022.
A project declared to be a ‘coordinated project’ is one the state government declares economically or socially significant to Queensland or the region in which the project is to be undertaken or affects an environmental interest of Queensland or a region.
Richmond Vanadium Technology has completed a Prefeasibility Study (PFS) at the 1.8Bt project, which the company says demonstrated a technically viable and financially attractive development project. The project has a completed process flowsheet using conventional techniques with a provisional patent application lodged with IP Australia covering the method for the concentration of vanadium.
Commenting on the IPO, Richmond Vanadium Managing Director Dr Shaun Ren said: “We are delighted to open our Initial Public Offering on 24 October 2022 after lodgement of a Prospectus for the IPO. Our Richmond Vanadium Project in Queensland represents an outstanding opportunity for investors to be part of as we move this exciting prospect into its Bankable Feasibility Study phase. Our highly experienced and energised team at Richmond Vanadium Technology looks forward to progressing the Project into this key stage of development and beyond.
Vanadium is emerging as one of the most important critical minerals that will enable the global energy transition being the key ingredient in Vanadium Redox Flow Batteries. With more investors targeting opportunities with this future in mind, we are confident that Richmond Vanadium Technology has strong potential to deliver shareholder value while putting the vanadium sector on the map in Australia.”
Write to Adam Orlando at Mining.com.au