The sale of an additional 5% equity interest was approved at an extraordinary general meeting of Dathcom Mining SA, which is the holding company of the project in DRC’s south.
US$5.5 million transaction
Under the terms of a June 2019 Share Sale Purchase Agreement, AVZ has paid the first tranche of US$500,000 to Dathomir Mining Resources SARL.
Another US$5 million will be paid to Dathomir at any time within 36 months from the date of the agreement.
AVZ’s managing director Nigel Ferguson said, “AVZ is pleased to receive confirmation of its increased equity stake in our Tier 1 Manono Lithium and Tin Project.
“We are continuing the process to secure additional equity in the Manono project from our main partner, La Congolaise D’Exploration Miniere (Cominiere), and are awaiting the appointment of a new managing director of Cominiere.
“AVZ’s team has been attending a series of meetings on this matter and we are hopeful of finalising a deal in the near future.”
Extra equity will “add to bottom line”
The Manono resource is the largest lithium project with the highest grade owned by an ASX-listed company.
It has a measured, indicated and inferred resource of 400 million tonnes at 1.65% lithium oxide, 715ppm tin and 34ppm tantalum.
Ferguson added, “The extra equity in the Manono project will add significantly to the bottom line and it is critical for project financing as AVZ continues its ongoing discussions with potential financiers and off-take partners.”
The company has a market cap of around $106 million and shares last traded at 4.6 cents.