AVZ minerals
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AVZ Minerals has provided the following report on its activities for the Quarter ended 31 December 2020.

AVZ MD, Nigel Ferguson says:

“The Company made significant progress into its ‘road to production’ for the Manono Lithium and Tin Project. Our most significant milestone in the December quarter came just prior to Christmas when we signed our first lithium offtake agreement with GFL International, a subsidiary of China’s largest lithium compound producer, Ganfeng Lithium.”

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“The fact that GFL has agreed to take 30% of our Manono Project’s initial SC6 yearly tonnage is a massive endorsement for the project as we continue negotiations with other off-takers for our lithium and tin materials.”

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“I look forward to updating our shareholders and the market once these offtake agreements are finalised.”

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“In terms of the project’s funding arrangements, we have made significant progress during the last few months around securing project debt financing.”

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“We have also attracted several interested industry participants and private equity investors around our equity component of the required funding, with those discussions still ongoing.”

“At an operational level, we advanced our licensing, permitting and environmental approvals for the Manono Project, as well as undertaking all of the necessary engineering and technical work that is required prior to the Board making its investment decision to mine by mid-2021.”

“We then look forward to awarding contracts for the construction of our process plants and hydro-electric power plant in Q2/21 in line with FID, with first shipment of Spodumene Concentrate (S6) scheduled for Q4/22.”

Highlights

  • Strategic offtake agreement signed with GFL International, a subsidiary of Ganfeng Lithium, China’s largest lithium compound producer on favourable terms:
  1. Initial 5-year term with option to extend for a further five years
  2. GFL to purchase up to 160,000 metric tonnes per annum of spodumene concentrate
  • Negotiations with several other offtake partners for lithium and tin materials ongoing
  • Discussions continued with financiers, with several expressions of interest received
  • Pit floor drilling of the Roche Dure ‘wedge’ continued to potentially upgrade additional Inferred Resources to Indicated Resources
  • New Ore Reserves to be generated from optimised mine design
  • Key Congolese Government agencies progress planning for a Special Economic Zone for the Manono region following a two-day workshop in October