AVZ welcomes new cornerstone investor
PERTH (miningweekly.com) – ASX-listed AVZ Minerals has raised A$14.1-million through a strategic share placement to new shareholder Yibin Tianyi Lithium.
AVZ on Monday said that it would issue 314.3-million shares to Yibin Tianyi at a price of 4.5c a share, giving the lithium chemicals producer a 12% stake.
Following the share placement, the two companies will enter into agreements for a binding offtake over AVZ’s Monono lithium and tin project.
AVZ MD Nigel Ferguson told shareholders that the funds raised in the placement would allow the company to complete the acquisition of an additional 5% in the Manono project from Dathmorir Mining, increasing the company’s overall interest in the project to 65%.
“The placement will also allow early development works to be undertaken at Manono while the definitive feasibility study is being completed,” said Ferguson.
Following the share placement, Yibin Tianyi will have the right to nominate one person to the AVZ board as a nonexecutive director.
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