https://www.miningweekly.com

AVZ ups stake in DRC lithium/tin project to 75%

21st September 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Mineral exploration company AVZ Minerals has revealed that it will boost its equity stake in the Manono lithium/tin project, in the Democratic Republic of Congo (DRC), to 75% in a $15.5-million share sale purchase agreement.

The ASX-listed company will buy an additional 10% equity stake in the project from its joint venture partner, Dathomir Mining.

Under the agreement, AVZ has paid $500 000 to Dathomir Mining as an advance payment. The remaining $15-million will be paid at any time within 12 months of the agreement being executed, or as soon as AVZ secures a minimum of $50-million project financing.

“This additional equity in the Manono project will add significantly to the project’s bottom line and net present value (NPV) and is critical to AVZ’s ongoing discussions with prospective financiers,” said AVZ MD Nigel Ferguson.

Based on a 75% project interest, AVZ’s share of the project NPV, using a 10% discount, would increase from $616-million to $771-million.

“The recently completed definitive feasibility study clearly demonstrated our Manono project is very robust, with strong financial metrics,” added Ferguson.

On a 100% basis, the project has an NPV of more than $1-billion and an internal rate of return of 33%.

The study, released in April, estimated that Manono will produce 700 000 t/y of high-grade lithium and 45 475 t/y of primary lithium sulphate over 20 years. The project will require a capital investment of $545.5-million.

 

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION