PERTH (miningweekly.com) – ASX-listed junior AVZ Minerals will raise A$15-million to fund work at its Manono lithium project, in the Democratic Republic of Congo, where it aims to define a mineral resource by early next year.
The company on Thursday reported that the placement would include a A$13-million strategic investment by Hong Kong-based Huayou International Mining.
The placement to Huayou would comprise some 186-million shares, at an issue price of 7c each, as well as 186-million attaching options exercisable at 10c each, and expiring within 20-months of issue.
All of the shares and 86-million of the options would be placed under the company’s existing capacity, with the remaining 100-million options subject to shareholder approval.
Following the share placement, Huayou would hold an 11% interest in AVZ.
In addition, AVZ would raise a further A$1.98-million from institutional and sophisticated investors through the issue of 28.2-million shares, at a price of 7c each, subject to shareholder approval.
The shares would be issued with up to 28.2-million attaching options exercisable at 10c each, and expiring 20 months after the date of issue.
AVZ told shareholders that funds from the share placement would go towards planned drilling and initial metallurgical testwork at the Manono project, with the objective of defining a mineral resource by early 2018.