[Ferro-Alloys.com]  Horizon Minerals Ltd (ASX:HRZ) shareholders are invited to take part in a priority offer of up to 25% of shares in Richmond Vanadium Technology Limited as part of that company’s Initial Public Offering (IPO), which is now open. The IPO for the new company with a proposed ASX code of RVT is intended to raise between $25 million and $35 million at an issue price of $0.40.

Following closure of the offer, Richmond Vanadium aims to list on the Australian Securities Exchange (ASX) at the end of November 2022.

Priority offer

Horizon’s eligible shareholders have been invited to take part in the priority offer at the issue price. The priority offer is expected to close on November 7, 2022, and the balance of the IPO is expected to close on November 14, 2022. Funds raised in the IPO will primarily be used for a bankable feasibility study at the Richmond Vanadium Project in North Queensland in addition to ongoing operating costs, investment in Ultra Power Systems Pty Ltd (UPS), general administration and working capital. RVT holds 100% of this project after Horizon Minerals completed a restructure of its 25% interest.

“Outstanding opportunity”

Richmond Vanadium managing director Dr Shaun Ren said: “We are delighted to open our Initial Public Offering on October 24, 2022, after lodgement of a prospectus for the IPO. "Our Richmond Vanadium Project in Queensland represents an outstanding opportunity for investors to be part of as we move this exciting prospect into its bankable feasibility study phase. "Our highly experienced and energised team at Richmond Vanadium Technology looks forward to progressing the project into this key stage of development and beyond."

About project

The project is one of the world’s largest undeveloped oxide vanadium resources and contains a world-class clean green focused vanadium deposit.

It hosts a mineral resource of 1.8 billion tonnes at 0.36% for 6.7 million tonnes of vanadium pentoxide (V?O?) and an ore reserve of 459 million tonnes at 0.49% for 2.25 million tonnes.

Richmond Vanadium Technology has completed a pre-feasibility study at the project, which demonstrated a technically viable and financially attractive development project.

The project has a completed process flowsheet using conventional techniques with a provisional patent application lodged with IP Australia covering the method for the concentration of vanadium.

Important critical mineral

“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,” Dr Ren said.

"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.”

Bell Potter has been appointed as lead manager to the IPO.

The offers of securities in connection with the IPO are made in a prospectus dated October 14, 2022, as supplemented by a supplementary prospectus dated October 21, 2022, each prepared by RVT.

• [Editor:tianyawei]