AVZ Minerals Limited (ASX: AVZ, OTCQX: AZZVF) has reached agreement with Suzhou CATH Energy Technologies to complete its US$240 million investment into the Manono Lithium and Tin Project in the DRC.
Further to the company’s previous announcements, the parties have now agreed to waive the following conditions precedent:
- the Mining Licence for the Manono Project being granted to Dathcom Mining SA;
- the entry by Dathcom and the DRC Government into the Collaboration Development Agreement; and
- Dathcom board and shareholders making a final investment decision and approving the transaction.
Managing Director, Nigel Ferguson, said it is anticipated that completion of the proposed transaction will occur during March 2022, allowing for the commencement of a multi-faceted global joint venture between AVZ and CATH focussed on multiple aspects of the battery metals supply chain.
“Finalising our agreement with CATH provides certainty of funding to progress development of the Manono Project, pending the award of our Mining Licence and Collaboration Development Agreement from the DRC Government,” Mr Ferguson said.
“We are in close consultation with the DRC Government authorities that are undertaking the Mining Licence assessment and are confident of delivering a favourable outcome for all stakeholders – most importantly the people of the DRC and our shareholders.”
The Manono Project comprises PR13359, which covers 188 sq. km. The Manono Project is located 500km due north of Lubumbashi in the south of the Democratic Republic of Congo (DRC) in central Africa. The project area can be accessed from Lubumbashi by a 1.5 hour flight or by road.
Infrastructure in Manono and the surrounding areas is limited. Power is currently generated at the Manono township using diesel generators and a recently commissioned solar power system. Dathomir has agreed to facilitate the rehabilitation of Piana Mwanga hydroelectric power station and the road from Lubumbashi to Manono. The road is subject to a US$285m upgrade presently being completed.
There is an abundance of good water supply for both local consumption and any potential mining operation at Manono. Other consumables are bought locally and supplemented by goods brought in from Lubumbashi and Kalemie to the North.
