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AVZ Minerals announces 3Q21 activities report

Published by
Global Mining Review,


AVZ Minerals Ltd has presented its quarterly activities report for the period ended 30 September 2021 and has provided the following commentary and update to shareholders.

Highlights

  • Suzhou CATH Energy Technologies (CATH) signed as a cornerstone investor to develop the Manono Lithum and Tin Project.
  • CATH will pay US$240 million for a 24% equity interest in the Manono Project and their pro rata portion of development capital with the transaction in totality contributing more than US$400 million, subject to the final project capital being verified.
  • Completed AUS$40 million capital raising (before costs).
  • Exercised options to acquire Dathomir’s 15% shareholding in Dathcom Mining.
  • Upgraded Manono JORC proved and probable ore reserves estimate to 131.7 million t – an increase of 41.6% from the 93 million t reported in the April 2020 definitive feasibility study (DFS).
  • Life of mine extended to 29.5 years based on a 4.5 million tpy operation (underpinned by the ore reserves) – an increase of 47.5% from the April 2020 DFS.
  • Actively engaged with the DRC government on permitting and licence requirements, with Permis d’Exploitation (mining licence), collaboration development agreement, hydro energy power plant agreement and Manono special economic zone agreement all progressing well.
  • Primary lithium sulfate reagent optimisation study completed and lithium Hhydroxide pre-feasibility study (PFS) awarded.
  • FEED, process plant design and site geotechnical investigation studies completed.
  • Discussions with potential financiers on project funding progressing well
  • Resource drilling at Carriere de l’Este deposit confirmed further high grade lithium and tin mineralisation, approximately 1.2 km long and open at both ends and down-dip.

AVZ Managing Director, Nigel Ferguson, said: “The cornerstone investor deal with CATH marked one of the most significant days in our company’s short history and clearly indicated to the world how important our Manono Lithium and Tin Project is.”

“AVZ is very excited to have someone of the calibre of Pei Zhenhua and Contemporary Amperex Technology Limited (CATL) as partners in our strategic objective to make the Manono Project a leading global producer of lithium products.”

“Both Pei and CATL clearly have the financial capacity, technical expertise and global credibility within the lithium conversion and lithium-ion battery industry to complement our world-class Manono Project.”

“The deal with CATH will fund a significant portion of the total required project financing, whilst AVZ maintains a controlling 51% interest in the Manono Project and our position as lead developer. The deal also provides significant opportunities to advance other downstream projects, providing an exciting future for AVZ shareholders.”

“From a licensing and permitting perspective, I remain confident that our excellent relationship with the government of the Democratic Republic of Congo will soon deliver our all-important mining licence, collaboration development agreement, hydro energy power plant agreement and Manono special economic zone agreement.”

“The granting of our mining licence will facilitate the release of our bankable feasibility study and shortly, we will also be in a position to announce the appointment of a Mandated Lead Arranger to lead the syndicated debt funding facility for the Manono Project.”

“Once the deal with CATH is finalised, the Board will be able to make a final investment decision which will kick-start project construction and ensure Dathcom will have sufficient equity capital to fund the first six to eight months of project construction capital with Financial Close for debt financing expected mid-2022.”

Read the article online at: https://www.globalminingreview.com/finance-business/29102021/avz-minerals-announces-3q21-activities-report/

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African mining news Lithium mining news