I don’t think CATH would want to break this partnership with AVZ when it comes to the securing a stake in Manono project (possibly the world largest high grade Lithium deposit). However considering the current situation I would think it’s better for AVZ not to agree on any further extension with CATH and arrange the funds via CR. If SYA can raise $190M surely AVZ can arrange $240M or more (I would personally prefer more dilution that handing 24% to the Chinese). This may possibly mean further delays in receiving the ML (not sure) but when this ownership issue is finally sorted then no one can stop AVZ from running the show regardless of the outcome. Also terminating the arrangement with CATH will only put AVZ in strong position going forward with interest from other major non-chinese players in this sector. CATH would need Lithium from Manono project if they are going to build the Battery Hub in DRC and if they can’t source majority of it from Manono project where will they get it from? GLTAH!
AVZ Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
