AVZ Minerals Ltd [ASX:AVZ] is up 7% today after the company’s board approved early works and a drilling program for the Manono Lithium and Tin Project.
Located in the Democratic Republic of Congo (DRC), the Manono Lithium and Tin Project is AVZ Minerals’ main focus. AVZ holds a 75% interest in the project while the other 25% is owned by the DRC government.
Last year, an independent comprehensive greenhouse gas study revealed that the project could have one of the lowest carbon footprints of any hard rock lithium miner in the world.
$25 million to advance the project
AVZ Minerals said today that it’s investing $25 million into the Manono Project.
$19 million will go into an early works program at the Manono Lithium and Tin Program. The idea is that the investment will help to keep the project’s development timetable up to date, in particular since the project’s mining licence is taking longer than expected.
The early works program will start in the second half of this financial year. The money will go into upgrading existing roads and bridges, buying critical mobile equipment that’s needed for the initial project development, progressing the camp construction, and the various technical studies needed.
The remaining $6 million will go into an extension drilling program at Roche Dure deposit. The company believes the drilling program has the potential to ‘significantly expand’ their last reported JORC mineral resource and ore reserves.
The $25 million will come from the $75 million in capital the company recently raised from institutional and sophisticated investors. In December, the company issued 150 million shares at 50 cents a share to fund the advancement of the project.
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Shares on the move after the announcement
AVZ Minerals’ shares shot upwards after the release and are trading at 91.5 cents at the time of writing. All in all, AVZ minerals is up over 300% since this time last year.
With a lithium supply crunch in the horizon, lithium prices are rising. Supply is struggling to keep up with demand, and car and battery makers are in a race to secure their lithium supply as EVs take off.
Looking to invest in lithium? Check out our complete guide on How to Invest in ASX Lithium Stocks Ahead of the Clean Energy Revolution.
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