AVZ Minerals has raised $9.8 million for further development of its Manono project. As stipulated in the SPP Prospectus, the amount, upon combination with the recently completed SPP, will bring the total proceeds from the new share issues to US $15m before costs as contemplated in the SPP Prospectus.
AVZ Managing Director Nigel Ferguson explained that this placement together with the oversubscribed SPP will leave AVZ fully funded to final investment decision. He further thanked Huayou Cobalt Group for its continued support and welcomed Lithium Plus and a number of new Australian and global institutions to the AVZ register.
According to media reports, the placement has been completed at 3.8¢ per share being the same price as under the SPP. Moreover, 257m new shares will be issued under the company’s 15% placement capacity.
Lithium Plus is a specialist lithium investment company led by Bin Guo who has close links to the battery manufacturing industry in China. Guo is also a director of North American Lithium Inc. – a Canadian mining company currently developing and commissioning an open pit lithium carbonate mine and processing plant near Val d’Or, Quebec.
Zhejiang Huayou Cobalt, through its group company Huayou International Mining, has continued its support by subscribing for US $1m in the placement to maintain a 9.30% interest in the company.
Huayou Cobalt Group is reportedly one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with a number of established mining operations within the Democratic Republic of Congo.
According to media reports, the placement comes at an exciting time for participants in the lithium industry as interest in electric vehicles in the world’s largest vehicle market surges. Moreover, AVZ notes that sales of electric cars in China are reported to have increased 188% in January 2019.