The funding will enable AVZ to increase its stake in the project from 60% to 75%
AVZ Minerals has raised A$40m ($30.1m) funding to advance its Manobo lithium and tin project in the Democratic Republic of the Congo (DRC).
The capital raising is expected to enable the company to progress the project towards a final investment decision.
Covering 188km2, the Manono project is located approximately 500km north of Lubumbashi in the southern part of DRC. It is an open-pit mining development.
The funding will enable AVZ to increase its stake in the project from 60% to 75%.
The company will increase its stake by exercising the options to acquire Dathomir’s minority shareholding of 15% equity in Dathcom Mining for $20m.
Dathcom Mining, which holds 100% of the Manono project licence, is a joint venture between AVZ and La Congolaise D’Exploitation Miniere of the DRC Government.
AVZ’s managing director Nigel Ferguson said: “The capital raising marks an important milestone in our journey to develop the Manono Project, providing AVZ with the required funds to increase the Company’s stake in the Project and secures the necessary working capital to commence the early capital works program.
“Increasing AVZ’s equity stake to 75% of the Manono Project adds significant value to AVZ shareholders, including the possible option to attract strategic cornerstone equity partners at the project level, which will assist to de-risk and potentially accelerate Manono’s development.”
In April last year, the company released a definitive feasibility study for the project, which will involve an estimated investment of nearly $545.5m for a mining life of 20 years.
Melbourne based engineering company Mincore secured a 12-week Front End Engineering and Design (FEED) contract for the project in February.
The planned project development includes finalisation of the bankable feasibility study in the second half of this year.
AVZ also expects to receive mining licence for the project in the second half of 2021.