Richmond Vanadium Technology opens IPO to fund NQ mine study

People have the opportunity to invest in a potential new industry in North Queensland with the release of an Initial Public Offer into the Richmond vanadium project.

People have the opportunity to invest in a potential new industry in North Queensland with the release of an Initial Public Offer into the Richmond vanadium project.

Perth-based Richmond Vanadium Technology Ltd has opened the IPO wanting to raise up to $35m to fund a Bankable Feasibility Study into the project which, if it proceeds, will establish Australia’s only vanadium mine about 400km west of Townsville.

The company is chaired by former West Australian National Party leader Brendon Grylls.

Writing in the prospectus, Mr Grylls says a prefeasibility study shows the project has “compelling financial returns” but the document also warns investors they should consider the investment as “speculative” and that mining development is “high risk”.

Drilling under way on RVT's vanadium tenements near Richmond.

Vanadium is a strategic rare element increasingly used to harden steel but is poised to play a pivotal role in the development of renewable energy and Vanadium Redox Flow Batteries.

Australia holds 18 per cent of the world’s vanadium reserves but does not produce the material while China, Russia, Brazil and South Africa account for almost all production.

Mr Grylls said with demand for renewable energy technology growing at a record pace, the demand for utility scale energy storage has never been more crucial and that vanadium redox flow batteries can store large amounts of energy at a ready state for long periods.

“Our planned investment into and partnership with Ultra Power Systems Pty Ltd, a manufacturer of VRFBs, has placed RVT at the cutting edge of the renewables revolution,” he says.

The cash raised will primarily be used to fund the study but will also go to operating costs, investment into Perth-based Ultra Power Systems, general administration and working capital.

The company says the project has one of the largest undeveloped oxide vanadium resources in the world in tenements near Richmond and that the mine and processing facility will have an annual throughput of 4.2 million tonnes, producing 790,000 tonnes of concentrate.

While there are hopes for refining and possible battery manufacture in Townsville, studies so far have focused on refining in China.

Bell Potter Securities is the lead manager for the IPO which is not underwritten.

Originally published as Richmond Vanadium Technology opens IPO to fund NQ mine study