10/08/2017 - 10:54

AVZ attracts Chinese investor for $15m raising

10/08/2017 - 10:54

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Africa-focused lithium explorer AVZ Minerals has attracted a Chinese miner for the bulk of a $15 million capital raising, which has been priced to take advantage of a recent doubling in its share price.

AVZ attracts Chinese investor for $15m raising
AVZ Minerals owns a 60 per cent stake in the Manono lithium project in DRC.

Africa-focused lithium explorer AVZ Minerals has attracted a Chinese miner for the bulk of a $15 million capital raising, which has been priced to take advantage of a recent doubling in its share price.

In a statement today, Perth-based AVZ said Huayou International Mining, a subsidiary of Shanghai-listed miner Zhejiang Huayou Cobalt, would acquire an 11 per cent stake in the company through the placement of 186 million shares at 7 cents each, worth $13 million.

AVZ also plans to raise a further $1.9 million through the placement of 28.3 million shares at the same price, to institutional and sophisticated investors.

The proceeds of the raising will be used to fund drilling and metallurgical work at AVZ’s majority owned Manono lithium project in the Democratic Republic of Congo, where a reverse-cycle drilling program is expected to get underway within the last three months of the year.

“We are extremely pleased to have attracted a strategic investor of the calibre of the Huayou Cobalt Group,” AVZ chairman Klaus Eckhof said.

“They have a proven track record in operating in the DRC, and in developing and financing mines.

“We look forward to working with Huayou to bring the Manono project into production on the fastest possible timeline.”

Hartleys acted as lead manager to the raising.

AVZ shares were 9 per cent higher to 9.6 cents each at 10am, well up from about 4 cents a month ago.

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