This follows Yibin Tianyi’s participation in an equity placement to the tune of A$10.68 million for 237.5 million shares.
These shares will be voluntarily escrowed for 12 months from the date of issue, which was May 14.
Flagship Manono project
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 annual production of up to 25,000 tonnes of lithium hydroxide.
Future staged expansions are expected to increase annual production to around 100,000 tonnes.
Yibin Tianyi will require about 600,000 tonnes per annum of spodumene concentrate (SC6) to satisfy its hydroxide plant when fully completed.
Strengthened balance sheet
On completion of the placement, AVZ 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.”