AVZ Minerals Ltd has received firm commitments for a placement to raise $75 million (before costs), with 85% of funds coming via new global institutions and the balance from existing sophisticated shareholders, including cornerstone investor Suzhou CATH Energy Technologies (CATH).
The placement was significantly oversubscribed and further confirms the significant level of interest in the Company’s world-class Manono Lithium and Tin Project, situated in the Democratic Republic of the Congo (DRC).
The successful capital raising allows the Board of AVZ to efficiently progress towards a Final Investment Decision (FID) for the commencement of project development at the Manono Project, as well as providing foundation support for AVZ’s longer term strategic vision to vertically integrate via further investments into downstream lithium processing opportunities.
The proceeds from the capital raise will allow the company to undertake its early site works programme to accelerate the project development timetable, ahead of a decision on its Permis d’Exploitation (mining licence).
Commenting on the capital raising, AVZ’s Managing Director, Nigel Ferguson, said:
“This capital raising marks an important milestone in our journey to develop the Manono Project which strengthens the financial position of the company and will assist to keep the project timeline within reach, despite the award of our mining licence taking longer than we had previously anticipated.”
“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”.
“Such a significant cash injection further de-risks the company during a time where increased market volatility is apparent and global economic uncertainty still remains.
“The placement also assists our financing discussions, providing capital for up-front debt finance establishment costs and ensuring minimum liquidity requirements are met which provides AVZ with a solid foundation to negotiate favourable terms.
“We welcome our new shareholders and thank our existing shareholders for their continued support, in what is expected to be an exciting time in the development of this truly world-class asset.”
Read the article online at: https://www.globalminingreview.com/mining/15122021/avz-completes-successful-placement-to-strategic-institutions/