Australian Vanadium (ASX:AVL) has received a letter of interest from the Export-Import Bank of the US for up to $31 million in financing to develop and construct its namesake project in Western Australia.
The bank’s support is related to the potential for equipment to be sourced from the US for the Australian Vanadium Project.
Australian Vanadium, which has a market capitalisation of $129.48 million, says the project will include a mine and a crushing, milling, and beneficiation plant located at Gabanintha. It will also include a downstream vanadium processing plant at Tenindewa.
CEO Graham Arvidson says receiving support from agencies such as Export-Import to help fund the project shows its “advanced and significant nature”.
“Australian Vanadium is working with a range of export credit agencies around the world, including Australia, in addition to commercial banks, to help secure finance to support the development of the project,” Arvidson says.
“Vanadium is classed as both a critical and battery mineral, with countries around the world looking to establish secure supply chains. Working with the US aligns with the Australian Government’s strategic goals for the critical and battery mineral industries.”
The company is continuing to progress the optimised Feasibility Study for Australian Vanadium, with upcoming key milestones focusing on finalising the detailed mining plan, optimising all project infrastructure, and completing the layout and key design criteria.
As part of the optimised Feasibility Study, Australian Vanadium intends to continue identifying opportunities to expand the scope of the project’s US content. The content includes equipment, goods and services, which may increase the size of the potential financing offered by Export-Import.
Vanadium is considered a transition metal with a natural resistance to corrosion and stability against alkalis, acids, and salt water. It can be used to make steel alloys, space vehicles, nuclear reactors, aircraft carriers, and much more.
In vanadium flow batteries, the battery metal is used to create reliable, safe, and stable solutions for the storage of renewable energy. These vanadium flow batteries have a lifespan of more than 20 years, offer immediate energy release, and are suitable for grid connection or off-grid settings — which is ideal for renewable energy.
Australian Vanadium also wholly owns renewable energy and energy storage subsidiary VSUN Energy, which focuses on developing the nation’s market for vanadium flow batteries for long duration energy storage.
The Australian Vanadium Project is considered to be among the most advanced vanadium projects globally, with a resource totalling 395.4 million tonnes at 0.77% vanadium pentoxide, containing a zone of 173.2 million tonnes at 1.09% vanadium pentoxide.
Write to Aaliyah Rogan at Mining.com.au
Images: Australian Vanadium
