Windimurra Vanadium raises $A54.8m

Windimurra Vanadium has raised $54.8 million to take its world class vanadium project into production, following successful closure of its heavily oversubscribed entitlement issue.

The raising completes all funding requirements for development of the Company’s Windimurra Vanadium project in WA’s Mid West, which is due to be commissioned in the last quarter of 2008.

Windimurra Vanadium Managing Director Dr Iain Scott said the Company had raised the maximum amount of funds available through the entitlement issue, which enabled shareholders to subscribe for one new share for each three shares held.

Through the offer, Windimurra will issue approximately 34.2 million new ordinary shares at a price of $1.60 per share. Shares will be issued and entered into the shareholder’s holding in the share register on 25 February 2008 and will be available for trading on 26 February 2008.

We are very pleased with the strong shareholder support for Windimurra, with all our major shareholders participating and most of them subscribing for additional shares. Dr Scott said.

This raising significantly de-risks the project by completing the $200 million finance package, following the finalisation of the $145 million debt funding arrangement in January. The capital raised will be used to complete redevelopment of the mine and plant at Windimurra and to take the project into production.

We are also making significant progress in execution on the ground, with about 50% of the project capital expenditure spent or committed, Dr Scott said.

The Windimurra project, located 600km north east of Perth, is based on one of the largest proven vanadium reserves in the world. Global demand for vanadium is expanding, driven mainly by growth in steel consumption which has seen vanadium spot prices increasing to above US$80/kg from price levels of just under US$40/kg during 2007.