Horizon opens $35m vanadium IPO

An initial public offering for shares in gold-focused Horizon Minerals’ partly-owned and highly anticipated vanadium spin-out in North Queensland is now open. The holding vessel, Richmond Vanadium Technology is seeking to raise up to $35 million in exchange for public exposure to the proposed development of what is hailed as one of the world’s largest undeveloped oxide vanadium resources. The spin-out company aims to list under the code ‘RVT’ at the end of November 2022.

The newly hatched vanadium vessel was born from earlier plans for Horizon to demerge its 25 per cent interest in the near-development Richmond vanadium project into a dedicated vanadium focussed IPO. Horizon shareholders will receive a proportional in specie transfer of shares in addition to a priority offering for up to 25 per cent of the new shares in the initial public offering.

The Richmond vanadium project houses a world-class vanadium resource of 1.8 billion tonnes grading 0.36 per cent for 6.7 million tonnes of vanadium pentoxide contained. In reserves, it contains 459 million tonnes running 0.49 per cent for 2.25 million tonnes of vanadium pentoxide contained.

The funds raised will be funnelled into a bankable feasibility study of the proposed mining and onshore processing and refining operation surrounding the project’s shallow oxide resource. Richmond believes the operation will bring significant economic development benefits to regional Queensland and the national economy.

Richmond Vanadium Managing Director, Shaun Ren said: “Vanadium is emerging as one of the most important critical minerals that will enable the global energy transition being the key ingredient in Vanadium Redox Flow Batteries. With more investors targeting opportunities with this future in mind, we are confident that Richmond Vanadium Technology has strong potential to deliver shareholder value while putting the vanadium sector on the map in Australia.”

Whilst vanadium has typically been used as a strength-adding alloy in the steel industry, it is gaining increasing popularity in the developing field of vanadium redox flow batteries. In the renewable energy space, the batteries are often used to store electricity for utility networks, commercial premises and industrial sites. The devices are also used to retain energy generated by solar and wind-powered systems.

Given its green applications, the speciality metal has been stamped as a ‘critical mineral’ by the Australian and United States governments.

According to US Geological Survey statistics, Australia is second in the world when it comes to reserves of vanadium, bested only by China. The nation’s reserves are built from deposits across Western Australia, the Northern Territory and Queensland.

Queensland’s inventory of the battery metal is primarily attributed to an emerging vanadium district between the two rural towns of Julia Creek and Richmond about 300km east of Mount Isa. In addition to Horizon’s spin-out, the district hosts a horde of listed companies and private outfits pursuing shallow oxide vanadium resources typical of the region and the associated credits of high-purity aluminium and molybdenum.

Notably, of the six vanadium projects listed in the Australian government’s Critical Minerals Prospectus of 2021, two projects – including the Richmond spin-out – are located in the district, another three in Western Australia and a single project in the Northern Territory.

The district’s other critical project is held by a private company, Multicom and packs a 289 million tonne resource going 0.25 per cent vanadium pentoxide that is nearing development. Another private outfit, V205, has amassed a 2600 square kilometre strategic holding surrounding the critical projects as it looks to probe for similar deposits. In terms of ASX-listed entities, the region also hosts QEM’s Julia Creek resource of 2.85 billion tonnes grading 0.31 per cent vanadium pentoxide and Critical Minerals Group’s resource of 210 million tonnes at 0.39 per cent vanadium pentoxide.

Whilst Western Australia is the undisputed king of lithium, it appears Queensland is slowly carving out its own battery metals crown from vanadium.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au