ASX-listed AVZ Minerals makes delivering a project in the Democratic Republic of Congo look like child’s play having garnered a reputation for delivering on its development milestones. The company is a mere 12 weeks away from its next milestone – a clear plan of action in delivering its Manono lithium and tin project.
Over the next 12 weeks, Melbourne-based engineering company Mincore will work on a number of keyFront End Engineering Design (FEED) study deliverables for Manono, which includes:
- Locking down the process flow sheet
- Confirming all bulk material quantities to verify pricing
- Confirming selected equipment pricing
- Finalising the execution schedule
- Providing “Issued for Construction” early works drawings
Mincore has offered to accept part payment for the FEED study in AVZ shares. The shares will be issued using the last previous closing price on the day of final invoice.
AVZ Minerals views Mincore’s decision to accept part payment of the FEED study in AVZ shares as a strong vote of confidence in the viability of Manono.
Moreover, Mincore has also been shortlisted as one of the contenders to execute the main process plant engineering, procurement and construction (EPC) contract. However, the company will update the market on award of the final EPC contract after the AVZ board has made its final investment decision.
“Progressing the design of the Manono project at this time is standard practice and has the benefit of bringing the technical design parameters to finality, thereby providing potential investors and financiers with comfort on the Manono Project schedule, capital and opex costs,” explains AVZ Minerals MD Nigel Ferguson.
“We are committed to progressing Manono in a timely manner and the award of this study is a big step on the pathway forward and will also save significant time moving forward, as the results of the FEED study will be delivered to the successful company that is awarded the process plant EPC contract,” says Ferguson.
Notwithstanding the project delivery milestones, negotiations are ongoing with a number of offtakers for Manono’s lithium and tin, while project financing discussions with financiers are also ongoing, with several expressions of interest received. It is for this reason that my AVZ Minerals is on my project radar.