Australian Vanadium has signed an option agreement with Mining Green Metals (MGM) for the latter to acquire a 100 per cent interest in the WA-located Coates Project and Nowthanna Hill Project tenements, application and associated mining information.
Vanadium and uranium are co-mineralised at Nowthanna Hill, while the Coates project boasts nickel-copper-PGE mineralisation potential.
Managing director Vincent Algar said with AVL’s primary focus being the development of the Australian Vanadium Project at Gabanintha, the option agreement offers AVL shareholders continued exposure to success at the Coates and Nowthanna Hill projects by a focused exploration company.
“AVL will retain an interest in the projects and be able to benefit from the suite of potential minerals at Coates which are currently in high and growing demand, as well as the future potential from the Nowthanna Hill Project,” he said.
The Option will provide the following benefits to AVL and its shareholders:
- AVL to receive 6.5 million fully paid ordinary shares in MGM
- A 0.75 per cent net smelter return royalty from the value of the minerals mined (Coates Project)
- A cash payment of $190,000