- AVZ Minerals (AVZ) finished off Q1 FY22 having made big advances at its flagship Manono Project in Congo
- The mineral explorer also ended the first quarter with more cash, after carrying out a capital raise during the three month period
- Additionally, AVZ used the funds to increase its stake from 60 per cent to 75 per cent in the the lithium and tin asset
- Significantly, Suzhou CATH Energy Technologies agreed to fund the development of the project, which has an upgrade ore reserve of 131.7 million tonnes
- Company shares are down 1.39 per cent at 35.5 cents per share
AVZ Minerals (AVZ) finished off Q1 FY22 having advanced its flagship Manono Project in Congo to the development phase.
The ASX-lister also ended the first quarter with extra cash, after carrying out a capital raise during Q1 FY22.
The mineral explorer had just over $10 million in the bank, after raising $40 million in a share placement to investors.
That cash balance gives AVZ another 2.72 quarters of growth, after it spent $3.63 million on operational and investment costs.
AVZ also used the placement funds to increase its stake from 60 per cent to 75 per cent in the lithium and tin asset in the Democratic Republic of Congo.
Significantly, Suzhou CATH Energy Technologies agreed at the end of Q1 to fund the development of Manono.
CATH will pay US$240 million (A$318 million) for a 24 per cent equity interest in Manono, while its pro rata portion of development capital will total US$400 million (A$530.2 million).
The asset has an upgraded proved and probable ore reserve estimate of 131.7 million tonnes — an increase of 41.6 per cent.
AVZ Managing Director Nigel Ferguson said he was pleased with the company’s progress.
“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,” Mr Ferguson said.
“The deal with CATH will fund a significant portion of the total required project financing, whilst AVZ maintains a controlling 51 per cent interest in the Manono Project and our position as lead developer.”
AZV Minerals was down 1.39 per cent at 35.5 cents per share at the close of trading on Friday.