Technology Metals Australia (ASX:TMT) reports it has received additional shareholder support for its proposed merger with Australian Vanadium (ASX:AVL) as the latter today (26 September) completes a $15.7 million institutional placement related to the deal.
Technology Metals Australia, which has a $75 million market capitalisation, reported yesterday it agreed to a $217 million merger with Australian Vanadium in a synergistic bid to become Australia’s first operating primary vanadium producer.
The companies will merge via a proposed scheme of arrangement under which Australian Vanadium will acquire 100% of the Technology Metals shares on issue.
Technology Metals says about 26% of its shareholders have provided written statements confirming their intention to vote their shares in favour of the scheme.
The vote is subject to various conditions including that no superior proposal emerges.
Addressing the shareholder support, Technology Metals Australia Managing Director Ian Prentice says: “It is very encouraging that TMT’s largest institutional shareholders are supportive of the proposed merger with AVL. Similar to the TMT management team and board, these shareholders recognise the significant benefits through the consolidation of these contiguous orebodies and technical teams.
TMT and AVL believe the merger will help accelerate the development of the combined project to the benefit of both sets of shareholders. TMT now has voting intention statements from shareholders (including RCF) representing approximately 26% of TMT shares on issue which demonstrates the strong support for the proposed merger with AVL.”
Meanwhile, Australian Vanadium has announced today it has raised $15.7 million from a strongly supported placement.
About 603 million new shares are being issued under the placement at a fixed price of $0.026 per new share, with proceeds expected to be applied to support initiatives involved with the integration strategy associated with the merger between both Australian Vanadium and Technology Metals Australia.
Proceeds from the placement will be applied to support project integration strategy, fund ongoing project, and corporate initiatives and general working capital and transaction costs.
Macquarie Capital and Canaccord Genuity are acting as joint lead managers and joint bookrunners to the placement.
Both Technology Metals and Australian Vanadium are expected to restart trading on the Australian Securities Exchange (ASX) today and settlement of the placement is expected on 29 September 2023.
Technology Metals Australia is a future-orientated company focused on the development of its flagship, wholly owned Murchison Technology Metals Project, which is expected to meet global demand for high-purity vanadium.
Australian Vanadium is a resource company also focused on vanadium through the development of its world-class namesake project in Gabanintha.
Technology Metals Australia had $16.464 million cash and cash equivalents at hand as of 30 June 2023 following the completion of an $11.5 million placement in May.
Write to Adam Drought at Mining.com.au
Images: Australian Vanadium
