Ann: Cornerstone investor secured for Manono Project, page-125

Time for an early morning VB.

This is how I thought they would do it and avoid FIRB. The Manano project is in Dathcom, and I always felt they would take a stake in the project itself and not AVZ, because the project is held by Dathcom. I posted around this in these posts. Refer: Post #:55112977 and Post #:55114070 I always felt that AVZ increasing its holding in Dathcom was essentially about maintaining majority control of the project (here now 51%) when a JV partner entered Dathcom.

With the ML, this funding will now probably move this project from been valued on a NPV basis to a transition point of NPV and EPS/PE ratios, before in production been based solely on EPS/PE - Post #:49062547' This is especially so now that the spodumene and sulphate is essentially accounted for in seller/buyer agreements.

Essentially, with the cornerstone funding, AVZ now can look at traditional debt to fund its portion of the project, and that should limit any further share dilution. Or another way to say it, this Ann is about an additional player in Dathcom by the looks of it, meaning AVZ's own shares on issue remain unchanged.

May take a few days for the market to absorb this news IMO. Obviously would have been nice to have some European customers, but looks like USA and Europe remain slow and how they deal with arresting the below will be interesting in time. China just seems to be a greater risk taker than Europe and USA and hence why the latter may get left behind if they don't get their crap together..




All IMO