Australian miner NewPeak Metals will acquire the Allaru Vanadium Project in the Julia Creek vanadium province of north-west Queensland.
The project has an inferred JORC resource of 710 million tonnes of vanadium
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The company has executed a binding term sheet with AusVan Battery Metals, which owns the project, offering $5m worth of 303,030,303 shares at $0.0165 each.
Alongside this acquisition, NewPeak plans a capital raise of between $2m and $3m to fund exploration and development activities.
The vanadium resources will support the steel and vanadium redox flow battery industry.
With six granted exploration permits and one application, the project spans 1,498km². The Allaru Vanadium deposit is hosted within the stratigraphy of the Toolebuc Formation.
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By GlobalDataThe deposit’s primary and secondary vanadium enrichments present potential for molybdenum, rare earth element and transport fuel co-products.
The recent exploration focus has been on Allaru North, with mineralisation found between surface sediment and the base of weathering.
The acquisition adds to NewPeak’s portfolio of critical minerals projects, complementing prior purchases of the George River Uranium-Rare Earths-Scandium project in Canada and Treuer Range Uranium-Vanadium project in the Northern Territory.
The company is also in the process of selling and monetising its current mineral assets in Finland, Sweden and New Zealand.
NewPeak will use proceeds from the rights issue for exploration at the George River, Treuer Range, and Cachi and Las Opeñas Gold projects (Argentina), and to cover working capital, administration, legal and fundraising costs.
Upon completing the transaction and assuming maximum subscription under the rights issue, the Ausvan vendors are projected to hold approximately 38.35% of NewPeak’s equity.
The vanadium grade across the Allaru Central and North areas has been composited, showing an average of 0.45% vanadium oxide.
An independent expert will assess the fairness of the transaction, with a general meeting scheduled for late January 2025 to seek shareholder approval.
In February this year, the company disclosed the sale of its entire stake in its Finnish subsidiaries, NewPeak Finland and Kultatie Holding, along with its remaining 25% interest in New Zealand Gold mineral permits.
In June, NewPeak completed the sale of its Finnish subsidiary, which holds Swedish strategic mineral permits, to a Canadian company, with a milestone payment structure based on exploration expenditure and resource reporting.
