Great announcement today, was very happy reading this one come through. Couple things crossed my mind.
- CATL/CATH want this Lithium ASAP and have decided to expedite the funds, this will allow AVZ to get on with ordering equipment and keep that late 2023 production timeline intact. CATL/CATH don't just spend money like this without serious due diligence, they are confident and have had reassurances it will all happen.
- Secondly, if we go back to the Marketherald video a couple days ago, Nigel said the $25m shows the DRC how AVZ can easily raise funds if need be. Perhaps this commitment is a way of showing the DRC that AVZ has no issues with financing and is read to go. The group of 15 assess the financing aspect as well as DFS so this could be a strategic move to make sure that box is well and truly ticked.
Overall just shows me how much CATH and Mr Pei have a great relationship with AVZ and are right behind this. Big future ahead.
A pattern of a couple announcements in short concession, perhaps a pattern forming with constant news flow and constrained pressure on the SP. ASX 200 addition will only add fuel to the already hot fire.
