- AVZ Minerals (AVZ) slips in early trade after delaying a planned optimised definitive feasibility study (DFS) for its Manono Lithium and Tin Project
- The company planned to release the DFS before the end of July, but today deferred the release to take on some more internal reviews of the study
- The news comes as part of AVZ’s latest financial report in which the company highlighted $3.5 million in net cash outflows for the June quarter
- AVZ Managing Director Nigel Ferguson says the company expects to secure some important government agreements for Manono before the end of the year
- Shares in AVZ Minerals are down 7.14 per cent and trading at 20 cents each at 10:34 am AEST
Junior miner AVZ Minerals (AVZ) has slipped in early trade after delaying a planned optimised feasibility study for its Manono Lithium and Tin Project.
The definitive feasibility study (DFS) has been in the works for some time, and AVZ said just last week it planned to release the study before the end of July.
Today, AVZ management said the company has decided to defer the release of the document as it takes on some more internal reviews of the study.
The news comes as part of AVZ’s latest quarterly financial report in which the company highlighted $3.5 million in net cash outflows for the three months to the end of June.
The company ended the June quarter with just under $2.5 million worth of cash in the bank, but within the first week of July managed to tap investors for $40 million through a private share placement.
AVZ Managing Director Nigel Ferguson said the company was “extremely busy” over the June quarter as it worked to progress its flagship Manono project, which lies in the Democratic Republic of Congo (DRC).
“Much work has also been undertaken with officials in the DRC Government with respect to securing the critical mining licence, as well as a collaboration agreement, Mpiana Mwanga HEPP Agreement and the Manono Special Economic Zone Agreement,” Mr Ferguson said.
He said while the company acknowledges that some licences and agreements with the DRC government are taking longer than initially outlined to investors, these are mostly due to shifting government timelines.
“It must be said AVZ enjoys a supportive and collaborative working relationship with the DRC Government and as such, it expects to secure all of the above licences and agreements in Q3/Q4 this year.”
As far as financing for the Manono Project goes, Mr Ferguson said the company is in talks with various banks, brokers, and non-commercial lenders to ink up some debt and equity funding agreements for Manono.
AVZ said the grant of a mining licence for the project will be a “significant catalyst” to see these talks come to fruition and lead to a final investment decision from the AVZ board.
Today’s update comes two weeks after AVZ upgraded the Manono Project’s JORC ore reserve.
Shares in AVZ Minerals were down 7.14 per cent and trading at 20 cents each at 10:34 am AEST. The company has a $627 million market cap.