The company has issued 237,500,000 shares to Yibin Tianyi which represents an ~9% stake in AVZ. The shares will be voluntarily escrowed for 12 months from date of issue.
AVZ has also repaid the US$1 million convertible note to N-Resource Limited, a company associated with Yibin Tianyi, making AVZ debt-free.
Early development works to get into full swing
Managing director Nigel Ferguson said: “I am delighted to finally welcome Yibin Tianyi as a shareholder of AVZ.
“Yibin Tianyi has always wanted to work with AVZ to progress the development of our Manono Project and I now look forward to finalise a formal offtake agreement with them for our lithium products.
“These funds strengthen the company’s balance sheet and allows us to progress with early development works at the Manono Project while we continue to engage with potential financiers.”
Significant anticipated demand for spodumene
AVZ’s flagship Manono Project in DRC is one of the world’s largest and highest grade undeveloped hard rock lithium projects.
Yibin Tianyi is set to become one of the largest lithium hydroxide producers in China, targeting production of up to 25,000 tonnes of lithium hydroxide per annum, with future staged expansions expected to increase production to approximately 100,000 tonnes per annum.
Yibin Tianyi will require approximately 600,000 tonnes per annum of spodumene concentrate (SC6) to satisfy its hydroxide plant when fully completed.