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Australian Vanadium Limited today announced the closure of options expired on 31 December 2018. These options were the ASX listed AVLO options which were immensely subscribed in the final month of its expiry.
In the announcement dated 10 January 2019, Australian Vanadium Limited (ASX:AVL) stated that 264 option holders subscribed for conversion of 204,599,484 options into shares during December 2018. By the end of this final round of option conversion, the company had added total $6,161,878 to its cash reserves, reflecting the total amount of options converted during their entire lifespan.
AVLâs Managing Director, Vincent Algar, stated that the start of 2019 with robust cash position had strengthened the companyâs plans for Gabanintha vanadium project. Mr. Algar added that this option conversion demonstrates the strong support of investors to the companyâs efforts toward taking this world-class vanadium deposits into production.
But on the slightly negative side, the company revealed that 94,790,643 options remained unexercised following the date of expiry. However, out of these unexercised number, 62,750,000 options were underwritten by Westar Capital Ltd at a value of $1,255,000 before costs. This reduced the remaining number of unexercised options to 32,040,643.
The report read that the company now has $9.68 million in cash, which intends to utilize in the development of Gabanintha vanadium project.
Updating about the current status of the project, the company informed that a pilot scale metallurgical study has already been started as a part of the definitive feasibility study (DFS). Further, it is projected that this pilot program will initiate a diamond drilling sample collection program in mid-January. Concurrent work on environmental studies is reportedly underway.
AVL stated Gabanintha vanadium project is steadily moving towards the development of new products with its high-grade deposits, low-cost processing, and strong fundamentals.
Mr. Algar stated that with a healthy cash balance work timeline can now be ramped up while the company remains confident to put forward a solid base for its prospective partners and investors.
Vanadium is one of the critical sources for steel production and with the electric revolution taking place, vanadiumâs demand has massively fueled up to the long-lasting levels. But no matter how the demand is booming, the supply sits next to negligible resulting in the sharply rising price of vanadium. There are almost no or very few vanadium producers currently because of which its supply remains tight throughout the globe.
The analysts predict that in 2019 there would be significant growth in the energy storage technology that requires vanadium redox flow batteries (VRFB). To serve the marketâs vanadium appetite, several companies are penetration into the VRFB supply chain to provide high-purity vanadium at innovating cost.
In todayâs trading session, AVLâs shares have been trading at higher levels. The stock price has jumped up by 9.901% to trade at $0.024 on 10 January 2019 (2:49 PM AEST). But in the past 12 months, AVL witnessed a negative performance of 21.43% including a plunge of 50% over the past three months.
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