NewPeak Metals has entered into a binding term sheet with AusVan Battery Metals, securing the Allaru vanadium project located in the Julia Creek vanadium province of north-west Queensland. Under the agreement, NewPeak will offer AusVan 303 million shares, valued at $5 million (A$7.76 million), at a price of $0.0165 per share.
The Allaru vanadium project boasts an inferred JORC resource of 710 million tonnes of vanadium. The project is situated within a 1,498km² area and spans six granted exploration permits, along with one application. The deposit is hosted within the Toolebuc Formation, and exploration so far has focused on Allaru North, where mineralization is found from the surface sediment to the base of weathering.
NewPeak is also planning to raise between $2 million and $3 million in capital to fund further exploration and development of the project. The vanadium resource is particularly significant for use in the steel industry and vanadium redox flow batteries. Additionally, the deposit has potential co-products such as molybdenum, rare earth elements and transport fuels.
In line with its growth strategy, NewPeak continues to expand its portfolio of critical minerals projects, including its recent acquisitions of the George River Uranium-Rare Earths-Scandium project in Canada and the Treuer Range Uranium-Vanadium project in Australia. The company is also in the process of monetizing its mineral assets in Finland, Sweden, and New Zealand.
Proceeds from the planned rights issue will be allocated to further exploration at the George River, Treuer Range, and Cachi and Las Opeñas Gold projects in Argentina. The funds will also cover working capital, legal expenses, and other administrative costs.
Upon completion of the acquisition, the AusVan vendors are expected to hold around 38.35% of NewPeak’s equity, assuming full subscription under the rights issue.
The vanadium grade across the Allaru Central and North areas has been composited to average 0.45% vanadium oxide. The company has commissioned an independent expert to evaluate the fairness of the transaction. A general meeting will be held in late January 2025 to seek shareholder approval for the deal.
Earlier this year, NewPeak completed the sale of its stake in Finnish subsidiaries NewPeak Finland and Kultatie Holding, as well as its remaining 25% interest in New Zealand Gold mineral permits. Additionally, in June, the company finalized the sale of its Swedish strategic mineral permits to a Canadian company, with milestone payments tied to exploration expenditure and resource reporting.
