AVZ Minerals Ltd (ASX:AVZ) has turned its attention to preparing infrastructure for the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC) as the company awaits approval for a mining licence for the tenure, following an oversubscribed $75 million placement and AVZ’s entry into the new DRC Battery Council.
The transaction implementation agreement (TIA) with Suzhou CATH Energy Technologies, one of the company’s cornerstone investors, has been extended to February 28, 2022.
Once this deal is closed, AVZ will have secured about 90% of the project capital funding required to bring the project to production, as defined by the April 2020 definitive feasibility study (DFS).
Read: AVZ Minerals shares up as DFS confirms robust metrics for Manono Lithium and Tin Project
“Yet another significant milestone”
AVZ Minerals managing director Nigel Ferguson said: “The $75 million capital raising secured in early December marked yet another significant milestone for the company and will greatly assist to keep our project timeline within reach – despite the award of our Mining Licence taking longer than anticipated.
“We are in close consultation with the DRC Government authorities undertaking the Mining Licence assessment and we are confident of securing a positive outcome with respect to all licencing and permitting agreements for the Manono Project.
“The granting of our Mining Licence will be a significant catalyst to finalise further binding finance agreements and ultimately, a Final Investment Decision (FID) for the Manono Project.”
AVZ says it will use the funds to:
- Negotiate the extra 15% equity in Manono from the Government from a strong cash position;
- Undertake early-works program, including upgrade of roads, bridges and progress camp construction subject to permitting;
- Progress various technical studies with respect to lithium hydroxide (LiOH) conversion and infrastructure initiatives that further enhance the project;
- Negotiate final project financing requirements from a position of enhanced balance sheet strength; and
- Provide necessary working capital for corporate requirements, including potential new exploration opportunities.
The Manono project will be key to AVZ’s participation in the DRC Battery Council’s plans to develop a sustainable battery value chain in the DRC and greater Africa.
About AVZ Minerals
AVZ Minerals is a mineral exploration company focused on the development of Manono Lithium and Tin Project in the DRC in central Africa.
The company has a 60% interest in the Manono Project, which is one of the world’s largest lithium-cesium-tantalum pegmatite deposits.
It is striving to be a near ‘zero emissions’ operation with an independent greenhouse gas assessment confirming the Manono Project could have one of the lowest carbon footprints of any global hard rock lithium mines.