American Vanadium Closes Second Tranche of Private Placement for $1 Million
May 8, 2014 (Source: Accesswire) — AMERICAN VANADIUM CORP. (“American Vanadium” or the “Company”) (TSX.V: AVC) (OTCQX: AVCVF) is pleased to report that it has closed the second tranche of non-brokered private placement announced on February 24, 2014 (the “Private Placement”). It has issued a total of 2,500,000 units at the price of CDN$0.40 per unit (a “Unit”) for gross proceeds to the Company of CDN$1,000,000. The Company has issued an aggregate of 12,500,000 units for total gross proceeds of CDN$5,000,000 from the two tranches of the Private Placement.
Each Unit issued pursuant to the Private Placement consists of one common share in the capital of the Company (a “Common Share”) and one-half of one warrant exercisable at $0.60 (“Warrant”). Each whole Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at a price of $0.60 until May 8, 2016.
The net proceeds of the Private Placement will be used for mine design, environmental permitting, general working capital and for sales and marketing activities of the CellCube vanadium redox flow batteries.
The Company paid a finder’s fee of 6% cash and the issued 6% Warrants on Units sold to certain subscribers.
All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus a day from the date hereof in accordance with applicable securities laws.
About American Vanadium Corp.
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American Vanadium is an integrated energy storage company that markets and sells GILDEMEISTER’S CellCube vanadium redox flow batteries in North America. American Vanadium is developing the only vanadium mine in the United States, providing a critical source of vanadium electrolyte for CellCube energy storage systems. The Company’s Gibellini Vanadium Project, located in Nevada, is being designed to economically produce vanadium electrolyte for the energy storage industry, as well as vanadium products for the steel and alloying industries.
ON BEHALF OF THE BOARD
Bill Radvak, President and CEO
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