- AVZ Minerals (AVZ) invests $2.9 million in exploration during the last quarter, as it prepares to ramp up activities at the Manono project in the Democratic Republic of Congo (DRC).
- The company has been in discussion with the DRC government, which is currently completing a Mining Licence assessment for the project
- Following a favourable technical opinion, AVZ is confident it will receive all necessary approvals and has chosen to invest $25 million in an early works program
- AVZ says it remains well funded for future activities, finishing the quarter with $70.6 million in cash
- Company shares have been trading 2.5 per cent higher at $1.04 at 10:16am AEDT
AVZ Minerals (AVZ) invested $2.9 million in exploration during the last quarter, as it prepares to ramp up activities at the Manono project in the Democratic Republic of Congo (DRC).
The company has been in discussion with the DRC government, which is currently completing a Mining Licence assessment.
Following a favourable technical opinion, AVZ said it is confident it will receive all necessary approvals and has chosen to invest $25 million in an early works program.
“The decision made by the Board in early February to commit $25 million to an early works and exploration program further demonstrated our confidence in bringing the Manono Project to development,” Managing Director Nigel Ferguson said.
“Undertaking this early works program in the second half of FY22 will assist the company to maintain our development timetable for the Manono Project.”
Over the period, the company continued work to secure debt funding for the development capital required for the Manono project.
It extended its agreement with Suzhou CATH Energy Technologies (CATH) to secure $240 million in exchange for a 24 per cent interest in the project. However, the agreement extension is due to expire at the end of this week.
If the deal with CATH closes successfully, AVZ will have 90 per cent of the required project development capital.
The quarter saw the company record negative cash flow of $1.3 million, which was mostly directed towards administration costs.
However, it said it remains well funded for future activities, finishing the quarter with $70.6 million in cash.
Company shares were trading 2.5 per cent higher at $1.04 at 10:16am AEDT.