Australian Vanadium (ASX:AVL) has agreed to extend its option agreement starting Sept. 1 by three additional 12-month option terms, for the purchase of land in Tenindewa, Western Australia, to be used as the location for the company's processing plant, according to a Wednesday filing with the Australian bourse.

The land will be purchased at AU$5,000 per acre for the first option term, increasing by 10% in each subsequent term, and an option fee of AU$53,360 applies to each of the three terms, the filing said.

The first fee is due in cash on Sept. 7, while payments for later terms will be made in company shares, the filing added.