AVZ Minerals (ASX: AVZ) (OTCQX: AZZVF) and Suzhou CATH Energy Technologies (CATH) have accelerated the completion of a US$240 million (A$335.6 million) investment:
- Last year, CATH agreed to invest in AVZ’s Manono lithium and tin project in the Democratic Republic of Congo in exchange for a 24 per cent stake in the asset
- AVZ says finalising its agreement with CATH provides certainty to proceed with the development of the Manono project, which is targeting the battery metals sector
- The transaction is expected to be completed next month, allowing AVZ and CATH to enter a joint venture
- AVZ ended Tuesday’s session 9.88 per cent in the red to close at 73 cents
AVZ Minerals (AVZ) and Suzhou CATH Energy Technologies (CATH) have finalised an agreement regarding cornerstone funding for the Manono lithium and tin project in the Democratic Republic of Congo (DRC).
The pair expedited the transaction that AVZ said was now expected to see CATH complete its US$240 million (A$335.6 million) investment in AVZ’s Manono project in March 2022.
Manono is held by Dathcom Mining, a joint venture between AVZ, who currently owns a 75 per cent interest, and a state-owned enterprise, which holds the remaining stake.
The original agreement came with certain terms and conditions, some of which have now been waived.
They included the Manono mining licence being granted to Dathcom, Dathcom and the DRC Government entering into a collaboration development agreement, and Dathcom’s board and shareholders making a final investment decision and approving the transaction.
“Finalising our agreement with CATH provides certainty of funding to progress development of the Manono project, pending the award of our mining licence and collaboration development agreement from the DRC Government,” AVZ Managing Director Nigel Ferguson said.
The company said it expects the US$240 million transaction to be completed next month, allowing AVZ and CATH to form a joint venture and focus on the battery metals supply chain.
AVZ opened Wednesday trading session 20% per cent up at 86 cents, giving it a market cap of $2.95 Billion.
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