- AVZ Minerals (AVZ) is set to bank $40 million via an oversubscribed share placement which offered investors shares at an 18.8 per cent discount
- A total of 307,692,308 new shares are set to be issued under the placement at $0.13 cents per share
- Funds are set to go towards the project’s early works program and general working capital
- The company is gearing up to finalise a bankable feasibility study for the project and receive its mining licence in the second half of this year
- AVZ Minerals shares closed today’s session up 3.13 per cent at 16.5 cents
AVZ Minerals (AVZ) is set to bank $40 million via an oversubscribed share placement which offered investors shares at an 18.8 per cent discount.
The company said the placement had been taken up by sophisticated, professional and institutional investors and ended up being oversubscribed by $10 million.
A total of 307,692,308 new shares are set to be issued under the placement at $0.13 cents per share.
Proceeds from the raise are set to go towards increasing AVZ’s interest in the Manono lithium and tin project in the Democratic Republic of Congo in central Africa from 60 per cent to 70 per cent.
In addition, the funds are hoped to assist to establish a working capital and contingency cost buffer during project development, and enhance the company’s early works program before a final investment decision is made.
The company is gearing up to finalise a bankable feasibility study for the project and receive its mining licence in the second half of this year.
AVZ Managing Director Nigel Ferguson said the capital raise marked an important milestone in developing the project.
“Increasing AVZ’s equity stake to 75 per cent of the Manono Project adds significant value to AVZ shareholders, including the possible option to attract strategic cornerstone equity partners at the project level,” he said. “This will assist to de-risk and potentially accelerate Manono’s development.”
ANZ Minerals shares closed today’s session up 3.13 per cent at 16.5 cents.