Investors back Tier 1 Manono lithium and tin project in $40M placement
(Kitco News) - AVZ Minerals announced that it has received firm commitments for a placement to raise $40 million (before costs) from sophisticated, professional and institutional investors to accelerate the advancement of the Tier 1 Manono lithium and tin project in the Democratic Republic of the Congo ("DRC").
AVZ said that the capital raising was undertaken to allow the company's Board to
efficiently progress towards a Final Investment Decision ("FID") for the
commencement of project development at Manono. It also follows continued achievement of several key recent milestones, placing AVZ in a strong position as it progresses toward FID.
Proceeds from the placement will increase AVZ's cash reserves, allowing it to increase AVZ's interest in the Manono project from 60% to 75% by exercising the options to purchase Dathomir's minority shareholding of 15% equity in Dathcom Mining for US$20 million (~AUD$27).
Additionally, the company said that the capital raising will help negotiate project financing with an enhanced balance sheet position, assisted with the addition of a supportive, larger nonretail shareholder base; and will assist in establishing a working capital and contingency cost buffer during project development and enhance AVZ's limited early capital works program before FID.
AVZ noted that in the second half of 2021, the company eyes finalisation of the Bankable Feasibility Study which is well advanced and tracking well, and expects awarding of the Manono Permis d'Exploitation (or Mining Licence) which will be a catalyst for FID.
The Manono project is owned by AVZ (60%), La Congolaise d'Exploitation Minière SA (25%) (Cominiere, a State-owned enterprise) and Dathomir Mining Resources SARL (15%). Project covers 188km2 in southern DRC and hosts lithium pegmatites with a strike length of 13km+ centred on an historical tin mining operation. The Roche Dure Mineral Resource of 400 million tonnes grading 1.65% Li2O, 715ppm Sn, 34ppm Ta is world-class in scale and grade.