The Queensland Investment Corporation is backing vanadium proponent Velox Energy Materials to the tune of $5 million as the company prepares to list on the Australian Securities Exchange.

QIC state chief investment officer Allison Hill said the investment – through the Queensland Critical Minerals and Battery Technology Fund – provided a pathway for construction of Velox’s North Queensland Vanadium Project to begin within three years.

It would create more than 50 jobs in early works and 150 jobs extracting the underexplored vanadium-rich deposits over the expected 30-year mine life, she said

Velox, formerly called Currie Rose, is already TSX-listed in Canada.

It expects to lodge a prospectus with Australian regulatory authorities this quarter to undertake a dual listing capital raising of $8 million to $10 million.

The company said the capital raising would help fast-track exploration and development of the North Queensland Vanadium Project, along with exploring commercialisation opportunities for its Kotai Hydrogen Project within Queensland.

Related: Velox eyes new target at NQ vanadium project

“With our flagship North Queensland Vanadium Project and Kotai Hydrogen Project both based in Australia, it is logical that we would seek to gain further exposure to Australian investors via a proposed dual listing on the ASX,” Velox Energy Materials president and chief executive officer Simon Coyle said.

“We are extremely excited to have a QIC-managed fund as a cornerstone investor in the proposed dual listing capital raise.

“QIC is one of the largest institutional investment managers in Australia and we see the investment as a strong endorsement of the potential of both the North Queensland Vanadium Project and Kotai Hydrogen Project.

“The funds being sought under the proposed dual listing capital raise will allow significant progression of the company’s assets as we move towards becoming a supplier of energy storage materials.”

The Queensland Critical Minerals and Battery Technology Fund will invest between $4 million and $5 million, depending on the amount raised from other investors. It is expected to emerge with a 15–19 per cent stake in the company.

Completion of QCMBTF’s investment is subject to conditions including a requirement that Velox raise a further $4 million (minimum) in funding by the end of the year.

Ms Hill said the QIC decision to become a cornerstone investor in Velox was grounded in long-term market confidence in vanadium and the opportunity for economic growth in Queensland.

“Up to two million tonnes of vanadium is required for battery storage to decarbonise industries and communities globally under 2050 net zero targets,” Ms Hill said.

“Total global production in 2023 represented approximately five per cent of this figure, so this sizable deficit demonstrates the significant opportunity that projects like NQVP allow Queensland to harness in the next critical minerals resources boom.

“Some of the world’s biggest and best vanadium resources are found in Julia Creek, where multiple drill-ready targets across NQVP’s 1,200 square-kilometre site give Velox distinct advantages in exploration and mineralisation potential.”

The QCMBTF’s earlier capital investments include Alpha HPA’s synthetic sapphire project in Gladstone and EQ Resources’ Mount Carbine tungsten mine north-west of Cairns.

You may also like: