ASX-listed AVZ Minerals has mandated Cantor Fitzgerald Canada Corporation to manage a $15 million capital raising.
Cantor Fitzgerald Canada Corporation (Cantor) has received a firm commitment for 100% of the placement from one of its North American institutional clients.
The placement will comprise 60 million shares at an issue price of 25 cents per share, together with 30 million attaching options exercisable at 30.5 cents, expiring 24 months from the date of issue, to raise $15 million.
At settlement the investor will hold approximately 3.2% of AVZ issued shares.
The securities will be issued under the existing placement capacity of AVZ Minerals in accordance with Listing Rule 7.1 with settlement expected to be on Wednesday 28 February 2018.
The funds will primarily be used for the planned 20 000 m Phase 2 drilling and pre-feasibility programs at the Manono project in the south of Democratic Republic of Congo, as well as ongoing corporate and administration costs.
AVZ Minerals expects the current Phase 1 drilling program to be completed in mid Q2, 2018 along with definition of an initial 2012 JORC compliant Mineral Resource estimate.
The drill rigs would then transition directly into the Phase 2 drilling program, which will mainly focus on increasing the confidence levels of the initial resource estimate.
“We are committed to an aggressive work schedule to advance development of Manono as quickly as possible and are cognisant of high volatility in international markets,” says AVZ Minerals executive chairman, Klaus Eckhof.
“We have now secured funding for our planned exploration and pre-feasibility programs through to the end of the year.
“Our existing and potential Chinese partners have told us they are looking for advancement of the project prior to making further commitments, and we are now funded to achieve this goal.”