Today, AVZ Minerals Limited (ASX: AVZ) has presented the long-awaited response to ASX queries, pending which it was officially suspended from trading on 9 October 2018.
The query relates to the content published in Global Business Report (GBR) article which is a transposition of a telephone interview between GBR business journalist and AVZ Managing Director Mr. Nigel Ferguson. This article was published on GBR website on 24 September 2018.
As per the article, Mr. Ferguson stated that AVZ Minerals could potentially raise funds and an offtake arrangement of 20% that would translate into US$30 million ‘and’ US$70 million.
But in the response to ASX queries, AVZ Minerals claimed that Mr. Ferguson did not use the word ‘and’ and has rather said that the company considers an option to explore potential capital raising and offtake arrangement of 20% for a total of between US$30 million ‘to’ US$70 million.
AVZ Minerals Limited further clarified that Mr. Ferguson’s statement was based on what AVZ aims to achieve and was not definitive to any pricing or an amount. The company said it would like to retract all the values quoted in the article in relation to potential offtake and sale as the statements are not consistent with the detailed disclosures required to form a reasonable basis for the comments made.
Moreover, it has been stated that the company’s intention of fund raising for Manono project and the option to sell offtake has already been discussed in the section “Project Funding” of the Scoping Study that was released on 9 October 2018.
In response to the question ‘Did the board of directors of AVZ approve the content of the Interview?’, AVZ Minerals stated the content of the interview was not formally approved by the Board of Directors as it was not required and was undertaken as a telephonic interview.
In an advice to investors, AVZ stated that any investment decision about AVZ shares should not rely on any retracted information relating to AVZ Minerals, including that contained in the article published by GBR.
Further, AVZ confirmed that it is in ongoing discussions with the related parties in respect to potential investment and off-take opportunities emerging from the Manono Lithium Project. But, no definitive value for funding and off-take arrangements has been given by the company.
In a separate announcement to Australian Securities Exchange, the company today informed that securities of AVZ Minerals Limited will remain officially suspended at its discretion, pending the release of further drilling results on the Manono Lithium Project. It is expected that drilling results will be released on 19th October 2018.
AVZ Minerals Limited stock last traded at a market price of $0.090. Whereas, the stock has seen a performance change of -33.33% over the past one year.
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