AVZ Minerals is set to advance its Manono Lithium and Tin project in The Democratic Republic of Congo (DRC). In a press statement, the company stated that it is coming up with a purchase plan to raise a minimum of US $3.5m million for this purpose.
According to media reports, the Share Purchase Plan
(SPP) will afford the Company’s Eligible Shareholders the opportunity to
participate and support their Company.
The SPP will be underwritten to US $3.5m by Patersons Securities which is acting as Lead Manager and Underwriter to the offer.
AVZ Minerals to advance Manono Lithium and Tin project in DRC
The New Shares will be issued at a 20% discount to the VWAP trading price over the 5 trading days before the date of issue of the New Shares and will only be offered to Eligible Shareholders free of brokerage and fees.
Moreover, funds raised will be used to fast-track pre-development activity such as the Definitive Feasibility Study including hydrogeological test-work, environmental studies, pit dewatering and for general working capital.
AVZ Managing Director Nigel Ferguson said that the Board acknowledges shareholders’ desire to support the Company’s progress. He further added that the capital raising has been conceived to reward existing shareholders by providing a cheaper method to support the company as well as certainty with regards to company progression.
He also noted that as a company AVZ is looking forward to providing further updates on Manono as they move towards completion of the definitive feasibility study.