ASX-listed AVZ Minerals has raised $9.8 million before costs which, combined with the recently completed SPP, will bring the total proceeds from the new share issues to $15 million before costs as contemplated in the SPP Prospectus.
“This placement together with the oversubscribed SPP will leave AVZ fully funded to final investment decision," says MD, Nigel Ferguson.
"I would like to thank Huayou Cobalt Group for its continued support and also welcome Lithium Plus and a number of new Australian and global institutions to our register.
"We look forward to working with Huayou Cobalt Group and Lithium Plus in developing the World-Class Manono Lithium and Tin Project."
The placement has been completed at 3.8¢ per share being the same price as under the SPP and 257 million 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 $1 million in the placement to maintain a 9.30% interest in the company.
Huayou Cobalt Group is 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.
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.
AVZ notes that sales of electric cars in China is reported to have increased 188% in January 2019 (source: The Australian Financial Review 23-24 February 2019, “Car Makers Brace for Electric Shock” written by Hans van Leeuwen).
Funds from the Placement and SPP will be used to execute the company’s strategy to fast-track the Manono Lithium and Tin Project towards production.
AVZ expects the funding to assist in achieving its goal of delivering the DFS for the Manono Project in 2019.