Ann: Trading Halt, page-20

ASX ANNOUNCEMENT 21 AUGUST 2019
Australian Vanadium Limited Launches Underwritten
Share Purchase Plan
Australian Vanadium Limited (ASX: AVL) (“AVL” or the “Company” is pleased to announce an underwritten
Share Purchase Plan (“SPP” to raise a minimum of A$3.5 million (before costs) to advance the
development of the Australian Vanadium Project and for general working capital.
The SPP will be underwritten to A$3.5 million by Patersons Securities Limited (“Patersons” which is acting
as Lead Manager and Underwriter to the offer. The New Shares (as defined below) will be issued at 1.15
cents per share, equivalent to an 18.8% discount to the volume weighted average price (“VWAP” over the
5 trading days before the date the SPP is announced. The SPP will be offered to Eligible Shareholders (as
defined below) free of brokerage and fees.
AVL’s Managing Director Mr Vincent Algar said: “AVL is at an exciting time in the development of the
Australian Vanadium Project, with the upcoming completion of pilot scale testwork and the Definitive
Feasibility Study. The additional funds delivered through the SPP will enable the Company to complete the
DFS, commence the Front End Engineering & Design process, update the Resource and Reserve with a view
to extending the defined minelife as well as continuing the negotiation of off-take agreements and other
key project licences and approvals. The Board wanted to ensure that all shareholders were offered the
opportunity to participate in the capital raising process, as the Company enters an active period ahead.”
Details of the SPP
The Company will offer Eligible Shareholders who were registered shareholders as at 5:00pm (AWST) on
Tuesday, 20 August 2019 (“Record Date” the opportunity to apply for up to A$15,000 of new fully paid
ordinary shares (“New Shares” in the Company under the SPP. Pursuant to the ASX Listing Rules the
number of New Shares that may be issued under the SPP must not exceed 30% of the number of Shares
currently on issue, being 592,153,136 New Shares ($6,844,261).
Additionally, the Company has agreed that Patersons may facilitate an offer of New Shares to be issued to
professional and sophisticated investors at the same price as those under the SPP (“Top-Up Placement” to
raise a further A$4 million (before costs).
The maximum number of New Shares that may be issued under the Top-Up Placement will be equal to the
Company’s remaining placement capacity as per ASX Listing Rules 7.1 (290,326,568 shares) and 7.1A
(196,884,378 shares) on completion of the SPP. The Top-Up Placement (if undertaken) will be conducted
by Patersons in its role as Lead Manager.
Under the SPP, Eligible Shareholders (being those whose registered address is in Australia or New Zealand
as at the Record Date) (“Eligible Shareholders” will be given the opportunity to purchase up to A$15,000
worth of New Shares in the Company at the offer price of 1.15 cents per share, irrespective of the size of
their shareholding, and without incurring brokerage or transaction costs