Richmond Vanadium Technology has lodged a prospectus for its initial public offering (IPO) with the Australian Securities and Investment Commission (ASIC).
The Australian minerals exploration company 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 to raise between $25-35 million.
Its proposed ASX code is RVT. The funds of the IPO will primarily be used to deliver the Bankable Feasibility Study (BFS) for its Richmond Vanadium Project, in addition to ongoing operating costs; up to $5m investment in privately held Ultra Power Systems (UPS), which is an Australian manufacturer of Vanadium Redox Flow Batteries (VRFBs), as well as for general administration and working capital.
Richmond Vanadium Technology is focused on advancing its 100% owned Richmond Vanadium Project in North Queensland. The company owns the project following Horizon Minerals (ASX: HRZ) completing a restructure and demerger of its 25% interest.
Addressing the IPO, Richmond Vanadium Managing Director Dr Shaun Ren said: “We are thrilled to have lodged our Prospectus for the Company to list on the ASX. This IPO is an important step in the evolution of Richmond Vanadium Technology as development of the Richmond Vanadium Project moves into the Bankable Feasibility Study phase. We have assembled a highly credentialed team that we are confident can take the Project through this next stage of development towards production.
“Our IPO comes at an ideal time with the emergence of the vanadium sector which continues to grow in prominence due to the critical mineral’s use in Vanadium Redox Flow Batteries. As investors increasingly embrace the global push for carbon neutrality, we are proud and excited to provide this opportunity for them to share in the potential of this project and the promising future ahead for vanadium.”
“Our IPO comes at an ideal time with the emergence of the vanadium sector which continues to grow in prominence due to the critical mineral’s use in Vanadium Redox Flow Batteries”
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 6.7Mt V₂O₅. The Queensland Government declared the Richmond Vanadium Project to be a Coordinated Project in May 2022.
The company has completed a Prefeasibility Study (PFS) at the project, which 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.
Vanadium is listed by the Australian and US Governments as a ‘critical mineral’ and presently, China, Brazil, Russia, and South Africa account for the majority of global production. China holds some 42% of the world’s reserves, but produces around 62% of vanadium, while Australia holds 18% of the world’s reserves but currently does not produce vanadium.
Vanadium is used in many industries and applications with remarkable characterises which make things stronger, lighter, more efficient, and more powerful. Most vanadium consumption (up to 92%) is ferrovanadium (a mixture of iron and vanadium) which is used to significantly increase the strength and hardness of steel.
Vanadium is poised to play a pivotal role in the commercialisation of renewable energy with the vanadium-based battery, the Vanadium Redox Flow Battery (VRFB), regarded as one of the leading energy storage systems. Vanadium consumption for VRFB’s is forecast to grow at an average 20.7% a year over 2020 to 2029.
With demand for renewable energy technology growing at a record pace, the demand for utility scale energy storage is crucial and VRFBs store large amounts of energy at a ready state for long periods of time, and rapidly release that energy as required.
Write to Adam Orlando at Mining.com.au