News: AVZ Australia's AVZ Minerals secures $240 mln funding for Congo lithium project

Sept 27 (Reuters) - Australia's AVZ Minerals (AVZ) said on Monday it had secured a $240 million funding from a private investment firm, jointly owned by Chinese battery maker CATL 300750.SZ , to develop its lithium project in the Democratic Republic of Congo (DRC).

Under the agreement, private equity firm Suzhou CATH Energy Technologies would get a 24% stake in the joint venture to develop the Manono lithium and tin project in southern DRC in exchange for the funding.

AVZ's interest in the project would drop to 51% from 75%, while DRC-owned firm Cominiere would retain its 25% stake.

In March, the Australian mineral explorer had entered an agreement with China-based Chengxin Lithium Group 002240.SZ for supply of lithium ore mineral spodumene from Manono project.

Suzhou CATH will contribute more than $400 million in total subject to costs verification, with parties also agreeing to assess the feasibility of developing a lithium hydroxide facility, AVZ said in a statement on Monday.