SYDNEY, AUSTRALIA: Australian Vanadium Limited (AVL) and Technology Metals Australia Limited (TMT) have announced that they have agreed to merge their respective vanadium projects in Western Australia via a scheme of arrangement.

The merger will create the leading Australian vanadium developer and will enable the combined group to realise the full value of the Gabanintha vanadium orebody, one of the best undeveloped vanadium resources in the world.

The merger will also provide operational and corporate synergies, such as reduced capital and operating costs, increased resource base and mine life, simplified permitting and approvals process, and enhanced financing and marketing opportunities. The combined group will have a strong balance sheet, with AVL securing a $30 million institutional placement from its major shareholder Resource Capital Funds (RCF).

Under the terms of the merger, TMT shareholders will receive 12 AVL shares for every TMT share they hold, resulting in AVL shareholders owning 58% and TMT shareholders owning 42% of the combined group. The merger is subject to certain conditions, including shareholder, court and regulatory approvals.

The CEOs of both companies expressed their excitement and support for the merger, saying that it will create a world-class vanadium asset of scale in a Tier-I mining jurisdiction. They also highlighted the growing demand for vanadium as a key component of long duration energy storage solutions, such as vanadium flow batteries, which are essential for the transition to net zero and a cleaner future.

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