AVZ Minerals Ltd (ASX:AVZ) has received strong investor support from option holders, with more than 175 million (+98.5%) of AVZO listed options being exercised at 3 cents per option between May 4 and the option expiry date of May 24.
The company had entered into an underwriting agreement with Canaccord Genuity to underwrite the exercise of the 177,622,382 options on issue on May 4 2020.
Only 2,619,005 options remained on issue at the expiry date and will be placed as shortfall shares by Canaccord in accordance with the underwriting agreement.
Settlement of the shortfall shares is expected to occur on or about Friday, May 29 2020.
The total amount raised from the exercise of options between May 4 2020 and May 24 and the placement of the shortfall shares under the offer will be about $5.3 million.
Manono Lithium and Tin Project
AVZ has also completed its final payment of US$1 million under the original acquisition agreement to acquire its 60% interest in the Manono Lithium and Tin Project.
The company retains the option to increase its holding in the Manono Project to 65% under the share sale purchase agreement announced on June 24 2019.
AVZ is also continuing to progress discussions with various entities relating to offtake agreements and financing arrangements.