Australian Vanadium (ASX:AVL) has received notification that its option agreement with Mining Green Metals (MG1) will not be exercised for the sale of the Coates Ni-Cu-PGE and Nowthanna Hill Uranium projects.
On 11 May 2022, Australian Vanadium and Mining Green Metals struck an option deal under which MG1 would acquire a full interest in the Coates and Nowthanna Hill projects from Australian Vanadium.
As part of the deal, Mining Green Metals would aim to list on the ASX, and the bulk of the consideration for the two projects would come in the form of MG1 shares post-initial public offering (IPO).
Australian Vanadium, which has a market capitalisation of $139.70 million, says that Mining Green Metals will no longer list on the ASX and will refund all application monies in full without interest.
Commenting on the option agreement at the time, Australian Vanadium Managing Director Vincent Algar said in an ASX release in May: “The option agreement offers AVL shareholders continued exposure to exploration success at the Coates and Nowthanna Hill projects in a focused exploration company.
“The option agreement offers AVL shareholders continued exposure to exploration success at the Coates and Nowthanna Hill projects in a focused exploration company”
AVL will retain an interest in the projects and be able to benefit from the suite of potential minerals at Coates which are currently in high and growing demand and the future potential from the Nowthanna Hill Project.”
Mining Green Metals lodged an IPO prospectus on 13 March 2023, but Australian Vanadium now says the planned listing will no longer go ahead.
The company did not specify any reason for the expired option deal, but it says it will continue to consider all options for both projects.
The Coates Ni-Cu-PGE Project covers similar mafic-ultramafic rock sequences to those that host the Chalice Mining (ASX:CHN) Ni-Cu-PGE Julimar Project.
Meanwhile, the Nowthanna Hill Uranium Project has a granted mining licence and Mineral Resource Estimate (MRE).
Australian Vanadium is a vanadium-focused resources company. The company is advancing the development of its ‘world-class’ namesake project at Gabanintha, which is one of the most ‘advanced’ vanadium projects being developed globally.
As of 30 June 2023, Australian Vanadium had $27.2 million cash at hand, according to its latest quarterly report published on 28 July.
Write to Aaliyah Rogan at Mining.com.au
Images: Australian Vanadium
