$3m for Australian Vanadium to advance Gababintha as King River forced to walk back ‘aspirational’ ASX statement

Date: Apr 12, 2018

Australian Vanadium has raised $3 million in a placement to two institutional investors to help fund a pre-feasibility study on its Gababintha vanadium project.

The unnamed groups will collectively take 75 million new shares at a discounted 4¢ a share.

Managing director Vincent Algar said the placement put the company in a strong financial position and confirmed the strength of its plans and confidence in its management.

Australian Vanadium shares were off 0.2¢, or 3.85 per cent, to 5¢ at 8.45am.

Another vanadium player, King River Copper, this morning was forced to retract what it described as an “aspirational statement” in a previous announcement made on Tuesday after a tap on the shoulder from the Australian Securities Exchange.

Under an announcement entitled “Concept Study Update” on its Speewah vanadium project near Kununurra, the statement read: “KRC aims to be a producer of 12,000 tonnes per annum of high purity vanadium pentoxide, 75,000-90,000 tonnes per annum of titanium dioxide and 300,000-400,000 tonnes per annum of iron oxide (hematite) in 3-4 years.”

The ASX considered the statement to be a production target and in breach of JORC code reporting requirements for an undeveloped resource.

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