AVZ scores a bigger piece of the tier 1 Manono lithium project
Link copied to
Special Report: Advanced lithium play AVZ is taking a bigger stake in Manono, confident that the mammoth, tier 1 project is on the path to production.
This extra equity is critical for project financing says AVZ, which is currently progressing discussions with prospective funding and off-take partners.
AVZ has paid the first $US500,000 tranche to project holding company Dathomir as part of the deal, with the $US5 million balance to be paid at any time within 36 months.
For AVZ shareholders, it shows that management has confidence in Manono – the largest, highest grade undeveloped hard rock lithium project in the world.
A recent extended scoping study concluded that Manono looks set to be a big money-maker even at conservative lithium prices.
AVZ isn’t stopping at 65 per cent, however, and is in discussions with its main partner La Congolaise D’Exploitation Miniere (Cominiere) to secure additional equity on similar terms.
“We are continuing the process to secure additional equity in the Manono Project from our main partner, Cominiere, and are awaiting the appointment of a new managing director of Cominiere,” AVZ managing director Nigel Ferguson says.
“AVZ’s team has been attending a series of meetings on this matter and we are hopeful of finalising a deal in the near future.
“The extra equity in the Manono Project will add significantly to the bottom line, and it is critical for project financing as AVZ continues its ongoing discussions with potential financiers and off-take partners.”
>> Now Watch: 90 Seconds With… Nigel Ferguson, AVZ Minerals