Shareholders back AVZ's A$14m placement
PERTH (miningweekly.com) – The shareholders of ASX-listed AVZ Minerals have approved a A$14.1-million share placement to China’s Yibin Tianyi Lithium Industry Company, with the company now starting initial offtake discussions with the new shareholder.
AVZ in November of last year announced plans to issue 314.3-million shares to Yibin Tianyi at a price of 4.5c a share, giving the lithium chemicals producer a 12% stake.
“We are excited with the progress of welcoming Yibin Tianyi as AVZ’s strategic partner following shareholder approval. The conditions precedent are progressing well and we expect all matters to be satisfied, including regulatory approvals, by the end of this month,” said AVZ MD Nigel Ferguson.
On completion of the placement, both parties will negotiate in good faith to agree and execute a binding offtake agreement of lithium products from the Manono lithium and tin project, in the Democratic Republic of Congo.
The product will be supplied to Yibin Tianyi’s lithium chemicals plant, which is expected to start production by June 2020 at a targeted rate of up to 25 000 t/y of lithium hydroxide.
Staged expansion plans are also in place to further increase production to around 100 000 t/y, making the plant one of the largest hydroxide suppliers in China.
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