- AVZ Minerals has announced Yibin Tianyi Lithium Industry will buy a 12 per cent stake in the company for $141.1 million
- Yibin Tianyi is backed by a number of Chinese entities including China’s largest EV battery manufacturer
- Upon completion of the placement, both parties will negotiate a binding offtake agreement for the products from Manono Lithium and Tin Project
- On market close, AVZ is up 6.98 per cent and is trading at 4.6¢ apiece
AVZ Minerals has announced Yibin Tianyi Lithium Industry will buy a 12 per cent stake in the company.
Yibin Tianyi will buy approximately 314 million AVZ shares for 4.5 cents per share, totalling $14.1 million.
Yibin Tianyi is backed by a number of Chinese entities including China’s largest EV battery manufacturer, Contemporary Amperex Technology (CATL) and Suzhou TA&A Ultra Clean Technology.
AVZ Managing Director Nigel Ferguson says the company is excited to welcome Yibin Tianyi as a new investor in AVZ, especially given the backing they have from CATL.
“Their intention to become one of the largest global lithium chemical producers certainly complements our vision of developing the largest hard rock lithium deposit in the world,” Nigel said.
“Yibin Tianyi’s intention to invest in AVZ and enter into a binding offtake arrangement underpins the tier 1 quality of our Manono Project,” he added.
Upon completion of the placement, both parties will negotiate a binding offtake agreement for the products from Manono Lithium and Tin Project.
Yibin Tianyi is currently constructing its Phase 1 lithium chemical plant in Yibin, China and expects it to be completed by quarter two 2020. It’s Phase 2 is expected to be completed by 2023/2024.
“The funds to be raised from this placement will enable AVZ to complete the acquisition of an additional 5 per cent project interest from Dathomir Mining SARL, increasing AVZ’s overall interest in the Manono Project to 65 per cent,” Nigel said.
“The placement will also allow early development works to be undertaken at the Manono Project while the definitive feasibility study is being completed,” he added.
On market close, AVZ is up 6.98 per cent and is trading at 4.6¢ apiece.