"All factors are aligning around our project financing discussions, with the project on the cusp of reaching a bankable status and intense global interest in the green battery minerals sector," says MD.
() is only weeks away from receiving all permits and licences required before making a final investment decision for the development of Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC).
The latest step in this process has been signing of the final written Environmental and Social Impact Assessment by the Direction de Protection de l’Environnement Minier (DPEM) under the authority of the DRC Ministry of Mines.
AVZ has been actively engaged with the DRC Government on all permitting and licence requirements for the project and has exercised its option to acquire Dathomir’s 15% shareholding in Dathcom Mining, increasing the company’s interest to 75%.
Progressing towards finalising BFS
AVZ managing director Nigel Ferguson said the company was executing on its strategy on all fronts to maximise shareholder value, increase its equity share in the Manono Project to 75% and receive Ministry of Mines written approval for its final ESIA in relation to its Mining Licence submission.
“DPEM approval of the final ESIA, which is executed by the President of the Evaluation Committee for the Ministry of Mines, is a highly encouraging development and signifies the DRC Government’s wider support for the Manono Project.
“All of the pending permit requirements, including the Mining Licence, Mpiana Mwanga Hydro-Electric Power Plant (HEPP) agreement, collaboration development agreement and the proposed Manono Special Economic Zone (MSEZ) is on track and the company is rapidly progressing towards finalising a bankable feasibility study and securing project financing, with a final investment decision expected in Q4 2021.”
Ferguson continued: "All factors are aligning around our project financing discussions, with the project on the cusp of reaching a bankable status and intense global interest in the green battery minerals sector."
Licensing and permitting
The process for the award of the Permis d’Exploitation (PE or Mining Licence) requires: -
1) Environmental approval of the ESIA report by DPEM – which has been completed and received;
DONE
2) Technical approval of the DFS report by the Directorate of Mines – currently under review and progressing very well
PENDING
2) Cadastre Minier (CAMI) approval – no issue expected.
PENDING
Following the above approval process a proposed ministerial decree drafted by CAMI is submitted to the Minister of Mines for final approval.
Meeting of ministers to take place
Earlier this month, company representatives met with a high-ranking DRC Government delegation which included senior advisors to the President of Mines & Energy, Ministry of Industry, Ministry of Mines, Ministry of Planning & Ministry of Finance.
The delegation provided unanimous support of the Manono Project based on the body of work completed by AVZ, which was submitted to the meeting of multi-sectorial Ministers with the objective of considering the Collaboration Development Agreement between the DRC Government and AVZ.
A decision around the proposed MSEZ is expected shortly after finalising the Collaboration Development Agreement, which will require provision of further detailed financial information and investor considerations in the MSEZ.
AVZ continues to enjoy a supportive, collaborative and cooperative working relationship with the DRC Government officials and is highly confident of receiving all necessary permitting and licencing requirements for the Manono Project.
A meeting of the Council of Ministers is scheduled to occur in the coming weeks resulting in a final decision on the collaboration development agreement, which encompasses support of the development of natural resources (mining and transformation industries) and infrastructure (roads, water and electricity).
Financing discussions
AVZ is actively engaged with various commercial banks, finance brokers, private equity investors and non-commercial lenders such as Pan-African Development Finance Institutions (DFI’s) to secure funding for the development of the Manono Project.
All factors are aligning around our project financing discussions, with the project on the cusp of reaching a bankable status and intense global interest in the green battery minerals sector.
