- AVZ (AVZ) receives firm commitments for a placement to raise $75 million at an issue price of 50 cents per share, a discount of 22 per cent from the previous closing price
- The placement comprises 150 million new shares, with 85 per cent of funds coming from new global institutions
- The company says the raising will expedite the commencement of project development at its Manono lithium and tin project in the Democratic Republic of Congo (DRC)
- Proceeds will also allow the company to undertake early site work programs while awaiting award of a mining license
- Shares were down 12.4 per cent trading, at 56.5 cents at 11.10 am AEDT
AVZ (AVZ) has received firm commitments to raise $75 million at an issue price of 50 cents per share, a discount of 22 per cent from the company’s previous closing price.
The placement comprises 150 million new shares, with 85 per cent of funds coming from new global institutions, including cornerstone investor Suzhou CATH Energy Technologies.
The company says the raising will allow its board to efficiently progress towards a final investment decision for project commencement at its Manono lithium and tin project in the Democratic Republic of Congo (DRC).
Proceeds will also allow the company to undertake early site work programs while awaiting the award of a mining license, including new infrastructure and construction of roads, bridges and a camp. Additionally, AVZ will negotiate an extra 15 per cent equity in Manono from the government.
Shares are expected to be settled and allotted on December 14, 2021.
Shares were down 12.4 per cent trading, at 56.5 cents at 11.10 am AEDT.