Under the terms of the agreement Australian Vanadium can choose to subdivide and purchase a portion of the land under consideration, however, if it chooses to subdivide it would need approval from Western Australia's Planning Commission.

Australian Vanadium's processing plant will take vanadium concentrate from the mine at Gabanintha.

Vanadium-bearing magnetite ore from Gabanintha will be crushed, milled and beneficiated onsite before being hauled to the plant at Tenindewa for final refining into high-quality, high-value vanadium products and an iron-titanium co-product.

Australian Vanadium chief executive officer Graham Arvidson said the company had worked with the landowners of the Tenindewa processing plant location to establish an option agreement that benefited both parties.

"We continue to progress our pit to battery strategy as we move the project towards production," he said.