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Lithiumstock AVZ Minerals raising $50m
Anthony Macdonald, Yolanda Redrup and Kanika Sood
Dec 8, 2021 – 10.30am
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Lithiumexplorer AVZ Minerals is raising $50 million at 50¢, a 23 per cent discount toits last close.
A lithium battery used in electronicvehicles NYT
AVZMinerals’ projects are based in Congo. It has a 75 per cent interest in theManono Project which is a lithium-rich pegmatite deposit; and a 100 per centinterest in lithium, tin and tantalum project Manono Extension.
The open pitproject completed a definitive feasibility study (DFS) this year, and AVZpreviously advised investors of 401Mt at 1.65 per cent of total lithium oxideresource.
Potentialinvestors were told AVZ has the world’s largest undeveloped lithium spodumeneresource, with a US$400 million investment commitment from Chinese chemicalgiant Suzhous CATH Energy Technologies subject to final development costs andgrant f the mining licence.
The projecthas a 20 year mine life and will need a capex of US$546 million ($767 million).
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AVZAVZ Minerals
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Updated: Dec8, 2021 – 11.37am. Data is 20 mins delayed.
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Investorsinterest in lithium, which is used in batteries for consumer electronics likelaptops and mobiles as well as in electronic vehicles, has sent lithium stocksshare price soaring.
AVZMinerals’ shares have risen 279 per cent so far this year, making it a $2billion plus market cap company. Its raise follows Liontown’s $450 millionplacement earlier this month, and Firefinch Resources’ plans torun an entitlement offer in February for its lithium spin off.
AVZ hiredCurran & Co and Cantor Fitzgerald as the joint lead managers andthe joint bookrunners for the raise.
Bids fromAustralian investors were due 11am Thursday.
(20min delay)