AUS
NZ
UK
CA
USA
IND
AVZ Minerals Limited (ASX:AVZ) based in Mount Hawthorn, Australia has recently announced the success of its placement to raise $9.8 million before costs to finalise the investment decision at the Manono Lithium and Tin Project, cornerstoned by the new strategic investor Lithium Plus, which has close links to the battery manufacturing industry in China; and the existing strategic investor Huayou Cobalt Group, a global manufacturers of cobalt chemicals for battery use.
AVZ explores for minerals and has core operations in central Africa. It received strong support from Australian and global institutions as well as high-end investors for the placement which along with the recent Share Purchase Plan (SPP), will lead to the total proceeds from the new share issues amounting to ~$ 15 million before costs. The Placement was achieved at 3.8 cents per share, the same price as under the SPP and as per the companyâs 15% placement capacity, around 257 million new shares will be issued. The SPP closed oversubscribed, on February 25th, raising $5.198 million before costs via the issue of new shares at the offer price of 3.8 cents per share. [optin-monster-shortcode id="swikrbu1d9j9aq0o4cko"]
Of late, the companyâs key focus lies in developing the 13-km Manono Project, one of the largest lithium rich LCT (lithium, caesium, tantalum) pegmatite deposits, where it holds 60 per cent interest, situated in the south of the Democratic Republic of Congo (DRC). Besides, the Company also entirely owns the Manono Extension Project and holds a 60 per cent stake in the Katanga Regional Project comprising seven exploration licences for the Kibaran Belt in southern DRC.
On February 19th, the company pleasingly reported consistent strong results from its mineral resource drilling that was completed in late 2018, at the Manono Lithium Project highlighting the presence of high-grade spodumene lithium mineralisation over thick intersections, confirming the site to be premium in terms of grade, expandability and mine life.
For the quarter ended December 31st, 2018, the company posted high net cash outflows from operating activities at AUD 5.63 million, mainly resulting from payments for exploration, evaluation, staff costs and cooperate expenses. There were no cash flow investing or financing activities during the quarter. Concludingly, the company had net cash and cash equivalents of AUD 910K as at December 31st, 2018. It also estimates the cash outflows for the next quarter to be around $4.33 million.
On the Australian Securities Exchange (ASX), AVZ Minerals has a market cap of AUD 83.09 million as of date with approximately ~1.89 billion outstanding shares. At the close of the trading session on February 27TH, 2019, the AVZ stock last traded at a market price of AUD 0.046, up 4.545%, indicating an intra-day gain of AUD 0.002. Around 87.98 million volume of shares were traded through the day.
The stock has been mostly down over the past one year with negative average return yields for three-months at 44.30% and for six months at 60%. The trend dragged into the new year with a negative YTD return of 40.54%.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
