The Pick News

NewPeak to acquire significant Queensland vanadium project

Written by Colin Hay | Dec 6, 2024 1:40:00 AM

NewPeak Metals (ASX:NPM) has executed a binding term sheet to acquire AusVan Battery Metals for $5 million worth of NewPeak shares at an issue price of $0.0165 per share.

Upon completion of the proposed transaction, NewPeak will become the sole owner of AusVan, which holds six granted Exploration Permits and one Exploration Permit application covering the Allaru Vanadium Project in northwest Queensland, which has an Inferred JORC Resource of 710 million tonnes of vanadium.

In conjunction with the Proposed Transaction, NewPeak will undertake a capital raising by way of a rights issue to raise not less than $2 million and not more than $3 million at an issue price of $0.0165 per NewPeak share. Further information in relation to the Rights Issue is provided below.

This acquisition marks a significant step of the company’s rejuvenation and transitioning plans in entering the strategic critical minerals space, as originally reported to the market. It follows in the footsteps of acquiring the George River Uranium, Rare Earth Elements (REE) and Scandium project, Quebec and Labrador, Canada and the Treuer Range Uranium-Vanadium project in the Northern Territory, Australia.

Additionally, the company has been successful in divesting its Finland, Sweden and New Zealand mineral projects.

The capital raising and assets sales provide both immediate cash, as well as the receipt of staged cash payments and tradeable shares over the near to medium term, to support the company’s exploration and future development plans for the Company’s critical mineral properties.

The Allaru Vanadium Project is located in the North West Minerals Province of Queensland around Julia Creek, amongst numerous significant vanadium deposits held by other companies, some of which are well on the way towards development.