AVZ Minerals’ exploration of the Manono lithium project in the Democratic Republic of Congo continues to progress including the initial 20 000 m resource drilling programme.
Central Africa – The Manono project comprises PR13359, which covers approximately 188 km2 .
The Manono Project is located approximately 500 km due north of Lubumbashi in the south of the DRC in central Africa. The project area can be accessed from Lubumbashi by a 1.5 hour flight or by road.
AVZ Minerals’ Manono lithium project drilling is progressing well on the resource drilling programme with four drill rigs working 24/7. Drilling to date has completed 8.073 m of the initial 20 000 m programme.
A summary of work completed includes:
- Geological logging and structural, sample marking up, orientating core, collection of R.Q.D’s continues
- Sampling of MO18DD021 and MO18DD023 continues. Cutting of MO18DD022 is complete and MO18DD024 will commence soon
- Drill holes MO18DD019 – 020 were despatched to the Lubumbashi ALS preparation laboratory
- Data entry of all the drill plods continues
Community relations and social investment
AVZ Minerals recently engaged with the Manono District Administrator and through the World Health Organisation sourced polio vaccine for children within the district.
AVZ Minerals supplied the logistics necessary for transport of medical personnel to remote villages within the province to allow inoculations to be given. We are proud to state that more children that thought within the area were inoculated in the program.
AVZ will continue to support this program and other similar projects in the future.
Renewal of Airguide contract
AVZ Minerals announced it has re-engaged Airguide International (Airguide) as its Strategic Adviser.
Singapore-based Airguide possesses a track record of successfully advising ASX-listed battery materials companies with regard to business strategy, investment funding and off-take partnerships in China.
Airguide’s principals have been actively involved in the China commodity space for more than 15 years and the global industry for more than 20 years individually.
In that time, they have established a clear track record for investing-in and advising companies across multiple commodities with respect to successfully completing agreements for off-take, joint-venture partnerships and investment.
The engagement period is for an additional 12-months and may be extended. The company will pay a retainer fee and issue Airguide 7.5 million performance rights, which will vest based on achievement of share price targets and are similar in structure to recent management incentives.
The performance rights shall vest in three equal tranches upon the following milestones being achieved:
- Tranche 1 shall vest if the 10-day volume weighted average share price (VWAP) for the shares on the ASX is A$0.34 or higher during the vesting period;
- Tranche 2 shall vest if the 10-day VWAP for the shares on the ASX is A$0.40 or higher during the vesting period; and
- Tranche 3 shall vest if the 10-day VWAP for the shares on the ASX is A$0.44 or higher during the vesting period.
The vesting period for the performance rights is from 1 December 2018 to expiry on 30 November 2021.
It is the view of the AVZ Minerals board that these milestones are very much aligned with shareholders’ interests and notes the milestone prices are significantly above the current share price of the company.