The offtake agreement signed with Chinese company CNMC (Ningxia) Orient Group Co is for 2000 tonnes per annum of vanadium for three years, equivalent to about 16% of the forecast annual production from the planned project, and worth (at current prices and exchange rates), about A$50 million per annum in revenue.

The funding and construction discussions are with CNMNC's sister company NFC, and are said to be at a "very early stage".

CNMNC is involved in producing vanadium nitrogen alloys and ferrovanadium for use in the Chinese steel industry.

Technology Metals completed a definitive feasibility study for Gabanintha last year.

The ASX-listed junior needs about US$318 million to build Gabanintha, with the project calculated to have a pre-tax net present value of $924 million, an internal rate of return of 34% and a payback of just over three years.

The project, located near Meekatharra, has a 16-year mine life.

Shares in Technology Metals closed Monday up 42% to A11.5c, capitalising the company at $12 million.

Technology Metals raised just over $2 million in new equity in February when it placed new shares priced at about 11c each.