AVZ Minerals completes $10.68 million equity placement to strategic Chinese partner

AVZ Minerals Ltd (ASX:AVZ) has completed a $10,687,500 equity placement to Yibin Tianyi Lithium Industry Co., Ltd after receiving Chinese Overseas Direct Investment approval.

The company has issued 237,500,000 shares to Yibin Tianyi which represents an ~9% stake in AVZ. The shares will be voluntarily escrowed for 12 months from date of issue.

AVZ has also repaid the US$1 million convertible note to N-Resource Limited, a company associated with Yibin Tianyi, making AVZ debt-free.

Early development works to get into full swing

Managing director Nigel Ferguson said: “I am delighted to finally welcome Yibin Tianyi as a shareholder of AVZ.

“Yibin Tianyi has always wanted to work with AVZ to progress the development of our Manono Project and I now look forward to finalise a formal offtake agreement with them for our lithium products.

“These funds strengthen the companys balance sheet and allows us to progress with early development works at the Manono Project while we continue to engage with potential financiers.”

Significant anticipated demand for spodumene

AVZs flagship Manono Project in DRC is one of the worlds largest and highest grade undeveloped hard rock lithiRead More – Source