- AVZ Minerals (AVZ) has secured a cornerstone investment to bring its flagship Manono lithium project in the Democratic Republic of Congo to production
- Suzhou CATH Energy Technologies will buy a 24 per cent interest in the project for US$240 million (A$330 million) and fund its portion of development costs
- The deal, which still requires regulatory approval and the granting of the mining licence, will leave AVZ with a controlling 51 per cent stake in Manono
- Before the market opens for the week, AVZ shares are sitting at 32 cents
AVZ Minerals (AVZ) has secured a cornerstone investment to bring its flagship Manono lithium project in the Democratic Republic of Congo to production.
Suzhou CATH Energy Technologies, an investment entity of Pei Zhenhua and Contemporary Amperex Technology Co Limited, will buy a 24 per cent interest in the project for US$240 million (A$330 million).
Further, CATH has agreed to fund its pro-rata portion of development costs equating to a possible investment of more than US$400 million (A$550 million).
AVZ Managing Director Nigel Ferguson said the investment was significant for the company and other stakeholders in the lithium project.
“We are delighted to enter into this deal with someone of the calibre of Mr Pei and CATL, both of whom have the financial capacity, technical expertise and credibility within the lithium conversion and lithium-ion battery industry to complement the world class Manono Project.”
The deal, which still requires Chinese regulatory approval and the granting of the mining licence for Manono before the end of November, will leave AVZ with a controlling 51 per cent interest in the project.
Manono is held by Dathcom Mining, a joint venture between AVZ which currently owns a 75 per cent interest, and a state-owned enterprise La Congolaise D’Exploitation Minière which holds the remaining stake.
Before the market opened for the week, AVZ shares were sitting at 32 cents.