AVZ Minerals has increased its stake in the Manono lithium and tin project by 5 per cent for US$5.5 million from Datchom Mining.
AVZ Minerals has increased its stake in the Manono lithium and tin project by 5 per cent for $US5.5 million from Datchom Mining.
At the completion of the transaction, AVZ’s equity interest in the project, which is located in the Democratic Republic of the Congo, will increase to 65 per cent.
The project has a capex in the range of between $US380 million and $US400 million, with a definitive feasibility study scheduled to be released in the second quarter of 2020.
Under the purchase agreement, AVZ will pay $US500,000 within 14 days, and the balance of the can be paid at any time within a period of 36 months from execution of the agreement.
AVZ managing director commented Nigel Ferguson said the company was pleased to be able to secure further equity interest in Manono.
“We are still in discussion with our main partner, La Congolaise D’Exploitation Miniere to secure additional equity from them on similar terms,” he said.
“Cominiere, as with all parastatal entities in the DRC, are currently under a ‘suspension of signature authority’ following the presidential elections.”
Shares in AVZ finished flat at 5.5 cents each.