Australian Vanadium Limited (AVL) and Technology Metals Australia (TMT) have announced that they have entered into a binding Scheme Implementation Deed (SID), under which the two companies propose to merge via a scheme of arrangement, subject to the satisfaction of certain conditions.
The combination of AVL and TMT is expected to create the leading Australian vanadium developer and provide maximum flexibility to realise the full value of the asset base as a result of operational and corporate synergies expected to arise from consolidation into a single, integrated operation.
Under the terms of the scheme, AVL will receive 100 per cent of TMT’s shares and each shareholder of TMT will receive 12 AVL 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 approximately 58 per cent of the combined group and existing TMT Shareholders will hold approximately 42 per cent.
AVL CEO, Graham Arvidson, said that the combination of AVL and TMT is transformational for both companies and marks a significant milestone in both management teams’s efforts to develop their respective projects.
“The logical consolidation of two adjoining projects on the same orebody will unlock material synergies for both sets of shareholders,” Mr Arvidson said.
“If successful, the transaction will create the leading ASX-listed vanadium developer and a world-class asset of scale located in a Tier-One mining jurisdiction.
“AVL’s institutional placement ensures that the combined group will be well-funded to progress integration and the go-forward development strategy. It is our opinion that RCF’s strong support for the placement highlights their long-term backing of the combined business as well as a broader view on the strengthening vanadium thematic.
“The transaction will leverage the best of both organisations, including best in class technical work, assets and people, and will result in AVL becoming the leading force in the Australian vanadium sector.”
TMT Managing Director, Ian Prentice, said that TMT is excited to be proposing the consolidation of the Gabanintha vanadium orebody, which he said is arguably one of the best undeveloped vanadium resources in the world.
“This all comes at a pivotal time for the global vanadium industry as vanadium flow batteries are established as a critical player in the long duration energy storage market, a key requirement for the world’s transition to net zero and a cleaner future,” Mr Prentice said.
“We very much appreciate our major shareholder RCF’s demonstrable support for the vanadium thematic and the development of this world class asset.”
