- Lithium explorer AVZ Minerals (AVZ) has been unable to receive a $14.1 million investment from Chinese company Yibin Tianyi Lithium Industry Co
- The Australian Foreign Investment Board has denied the proposed investment, stating that it is not in the national interest
- AVZ planned to use the investment to advance its Manono Lithium and Tin Project on DR Congo
- A recent Definitive Feasibility Study of Manono estimates the site could generate approximately $5.98 billion in profits over 20 years
- AVZ is now seeking further funding to progress the project
- AVZ Minerals entered a trading halt this morning, with shares locked in at 5.9 cents each
Lithium explorer AVZ Minerals (AVZ) has been unable to receive an investment from Chinese company Yibin Tianyi Lithium Industry Co.
Yibin Tianyi was planning to invest $14.1 million in AVZ, in exchange for an 11.77 per cent stake.
However, after a decision from the Federal Government was delayed earlier this month, it now appears the investment will not proceed.
Yibin Tianyi’s lawyers informed AVZ that the Foreign Investment Board would reject the proposed investment on the grounds that it wasn’t in the national interest. As a result, Yibin Tianyi has withdrawn the offer but plans to evaluate alternative ways to invest in AVZ.
The proposed investment was intended to help progress the Manono Lithium and Tin Project on DR Congo. AVZ currently holds a 60 per cent interest in the project. The remaining interest is shared between state-owned La Congolaise d’Exploitation Minière SA and a private company called Dathomir Mining Resources SARL.
Earlier this week the company released its Definitive Feasibility Study for the project. The study estimates the site could generate approximately $5.98 billion in profits over a 20-year mine life.
With these results in mind, AVZ Managing Director, Mr Nigel Ferguson remains confident about the project, despite today’s news.
“Naturally, we are disappointed with the outcome of the FIRB application process but will double our efforts and commitment to bring our world-class Manono Project into production.
“This week’s release of our highly positive Definitive Feasibility Study has generated significant interest from a wide range of investors and potential financiers, and I am confident we will secure the necessary short term funding as well as longer-term debt and equity finance on highly competitive terms,” he said.
AVZ Minerals entered a trading halt this morning, with shares locked in at 5.9 cents each.