Technology Metals Australia (ASX:TMT) has today (15 November 2023) lodged with the Australian Securities Investment Commission (ASIC) a draft scheme booklet in relation to the proposed scheme of arrangement under which Australian Vanadium (ASX:AVL).
Once the booklet has been approved by the court and registered with ASIC, it is expected to be dispatched to shareholders on or shortly after 4 December 2023.
A scheme meeting is expected to take place around mid-January 2024 after which the scheme is expected to be implemented duringFebruary 2024.
As reported by Mining.com.au in September, Technology Metals and Australian Vanadium agreed to a $217 million merger in a synergistic bid to become Australia’s first operating primary vanadium producer.
Technology Metals’ board has recommended shareholders vote in favour of the merger.
Under the terms of the scheme, each Technology Metals shareholder will receive 12 Australian Vanadium fully paid ordinary shares for every fully paid ordinary TMT share held at the scheme record date.
If the scheme is approved and implemented, existing AVL shareholders will hold 58% of the combined group and existing TMT shareholders will hold 42% of the combined group (prior to any dilution associated with a proposed placement).
Technology Metals’ 100% owned Murchison Technology Metals Project (MTMP) is expected to meet global demand for high-purity vanadium, increasingly recognised as a critical mineral around the world.
Australian Vanadium is advancing the development of its namesake Australian Vanadium Project at Gabanintha.
Write to Adam Orlando at Mining.com.au