Market Herald logo

Subscribe

Be the first with the news that moves the market
  • AVZ (AVZ) receives firm commitments for a placement to raise $75 million at an issue price of 50 cents per share, a discount of 22 per cent from the previous closing price
  • The placement comprises 150 million new shares, with 85 per cent of funds coming from new global institutions
  • The company says the raising will expedite the commencement of project development at its Manono lithium and tin project in the Democratic Republic of Congo (DRC)
  • Proceeds will also allow the company to undertake early site work programs while awaiting award of a mining license
  • Shares were down 12.4 per cent trading, at 56.5 cents at 11.10 am AEDT

AVZ (AVZ) has received firm commitments to raise $75 million at an issue price of 50 cents per share, a discount of 22 per cent from the company’s previous closing price.

The placement comprises 150 million new shares, with 85 per cent of funds coming from new global institutions, including cornerstone investor Suzhou CATH Energy Technologies.

The company says the raising will allow its board to efficiently progress towards a final investment decision for project commencement at its Manono lithium and tin project in the Democratic Republic of Congo (DRC).

Proceeds will also allow the company to undertake early site work programs while awaiting the award of a mining license, including new infrastructure and construction of roads, bridges and a camp. Additionally, AVZ will negotiate an extra 15 per cent equity in Manono from the government.

Shares are expected to be settled and allotted on December 14, 2021.

Shares were down 12.4 per cent trading, at 56.5 cents at 11.10 am AEDT.

AVZ by the numbers
More From The Market Herald
Limeade (ASX:LME) - CEO, Henry Albrecht

" Limeade (ASX:LME) maintains FY21 financial guidance in quarterly report

Limeade (ASX:LME) has maintained its FY21 revenue guidance of $50 million to $53 million, but posted…
Sihayo Gold (ASX:SIH) - Executive Chairman, Colin Moorhead

" Sihayo Gold (ASX:SIH) secures further interim funding

Sihayo Gold (ASX:SIH) has secured interim funding from its shareholder, PT Saratoga Investama Sedaya Tbk.

" Alchemy Resources (ASX:ALY) commences aircore drilling at Karonie

Aircore drilling is underway at Alchemy Resources' (ASX:ALY) Karonie gold project 110 kilometres east of Kalgoorlie,…
Little Green Pharma (ASX:LGP) - Managing Director, Fleta Solomon

" Little Green Pharma (ASX:LGP) seeks to expand to Greece

Little Green Pharma (ASX:LGP) seeks to expand to Greece