AVZ Minerals Ltd (ASX:AVZ) has inked an agreement with Suzhou CATH Energy Technologies to finalise a US$240 million investment in the Manono Lithium and Tin Project in the Democratic Republic of the Congo (DRC).
As the company pointed to late last year, the parties have now struck a deal under which they will waive the following conditions:
➢ the mining licence for the Manono Project being granted to Dathcom Mining SA;
➢ the entry by Dathcom and the DRC Government into the collaboration development agreement; and
➢ the Dathcom board and shareholders making a final investment decision and approving the transaction.
Focus on battery metals supply chain
The parties anticipate that the deal will be finalised in March, heralding the start of a multi-faceted global joint venture between AVZ and CATH that focuses on multiple aspects of the battery metals supply chain.
AVZ managing director Nigel Ferguson said: “Finalising our agreement with CATH provides certainty of funding to progress development of the Manono Project, pending the award of our mining licence and collaboration development agreement from the DRC Government.”
“We are in close consultation with the DRC Government authorities that are undertaking the mining licence assessment and are confident of delivering a favourable outcome for all stakeholders - most importantly the people of the DRC and our shareholders.”
Read: AVZ Minerals Ltd progresses transaction with Suzhou CATH to develop Manono Lithium and Tin Project