Lithium developer AVZ Minerals [ASX:AVZ] has extended its voluntary suspension on Friday as it continues to work through regulatory and ownership issues concerning its Manono Lithium Project.
AVZ’s suspension has come during a sharp correction in lithium stocks as investors exit more speculative assets.
Prior to the suspension, AVZ shares were trading flat year to date.
Source: Tradingview.com
AVZ’s extension request
AVZ Minerals has lodged a request to extend its voluntary suspension — a pause which first began when the company announced in early May that there were certain issues regarding mining and exploration rights for its Manono Lithium and Tin Project.
The company said that although it notes encouraging progress with the project discussions so far, its first request to halt trade still stands for now.
But what are these issues the lithium developer is alluding to?
Earlier in May AVZ told the public that it had secured a mining licence for its Manono Lithium Project, its 75% owned joint-venture with Dathcom Mining.
However, since this release, the particulars seemed to have been ongoing, with little information provided by the company.
The company merely reiterated its previous statements made in both May and June:
‘The Company is not aware of any reason why the voluntary suspension should not be granted, nor of any other information necessary to inform the market about the voluntary suspension.’
AVZ is requesting this latest suspension extension to cover the next couple of weeks, until 15 July, unless it releases an announcement regarding an update in the meantime.
Has the ASX lithium sector peaked?
AVZ has been relatively tight-lipped about the proceedings surrounding its mining and exploration rights for the Manono Project.
The market is relatively in the dark still, and the extended voluntary suspension isn’t providing any clarity.
Investors will have to wait a while longer for definitive answers.
Now, despite AVZ’s regulatory issues, how is the wider lithium sector doing?
Has the lithium and the battery tech theme peaked? Unlikely, according to our small-cap expert Callum Newman.
The world where most of us drive EVs is still ahead of us, meaning the world will need plenty of battery materials to get us there.
Callum has recently penned a report on battery material stocks.
He thinks there are ASX stocks flying under the radar who could be the next ‘chosen ones’ — stocks tipped by Tesla to be their battery materials supply partners.
Callum thinks that one of the three battery stocks in his latest report ‘could be one of the most exciting nickel projects in the world. I’m not kidding’.
To find out more, read Callum’s latest battery materials report, ‘Elon’s Chosen One’, here.
Regards,
Kiryll Prakapenka,
For Money Morning
