Elysee Development (ELC.V) is increasing its exposure to a buoyant vanadium market by taking a 19% stake in US Vanadium LLC, which is currently sourcing vanadium concentrate to be processed into high-purity V2O5, Technical Grade V2O5 and Vanadium-Trioxide using a US-based processing facility through a tolling agreement. The operations are already up and running and according to Elysee, the first shipments of V2O5 will be sent out this month.
This is an interesting move as it allows Elysee to participate in the profitable process of upgrading vanadium concentrate into saleable and marketable concentrates. The initial financial requirement for the 19% stake was US$285,000, but Elysee anticipates the business will continue to grow and expects it will have to invest a total of US$950,000 in US Vanadium LLC. Considering Elysee had access to approximately C$4.3M (US$3.2M) as of the end of September after successfully completing a no-warrant placement at C$0.35, the company should have no issues to continue to bankroll its 19% stake in US Vanadium and have plenty of cash available to deploy in other opportunities.
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The author has a long position in Elysee. Elysee is a sponsor of the website. Please read the disclaimer
