Ann: AVZ to raise $15 million to fund Manono Project, page-121

AVZ Minerals Ltd (AVZ) – RAISES $15 MILLION TO FUND MANONO PROJECT


Company Snapshot (post raise)

Shares on Issue: 1,688,752,357

Options: 514,286,714 (35m @ 1.2c expiring September 2017, 300m @ 3c expiring February 2020, 214m @10c expiring June 2018)

Price: 9.6c

Cash: ~$17M

Market Cap @9.6c ~$162M (post raise)

EV: ~$145M (post raise)


Highlights


·$15M placement including $13M to strategic investor Huayou Cobalt Group to acquire an 11% interest in AVZ

·Huayou Cobalt is a Chinese company listed on the Shanghai Stock Exchange with a market capitalisation of approximately Y38 billion (~US$5.8 billion). Huayou Cobalt’s main business is nonferrous smelting of cobalt, nickel and copper.

· Huayou Cobalt is the largest cobalt chemicals producer at present in China.

·Funds to be used for planned drilling and initial metallurgical testwork programs at the Manono project

·The Company intends to embark on a significant diamond and RC drilling program commencing late Q3 / early Q4, with the objective of defining Mineral Resources to JORC 2012 standard by early 2018.


Mr Klaus Eckhof, Executive Chairman of AVZ, said “We are extremely pleased to have attracted a strategic investor of the calibre of the Huayou Cobalt Group. They have a proven track record in operating in the DRC, and in developing and financing mines. We look forward to working with Huayou to bring the Manono Project into production on the fastest possible timeline.”