AVZ Minerals Ltd (ASX:AVZ) non-executive chairman John Clarke told the company’s annual general meeting that despite a global pandemic the company has delivered significant progress for its world-class Manono Lithium and Tin Project.
He said: “During the last 12 months, our team has delivered a ‘highly positive’ definitive feasibility study for the Manono Project, undertaken substantial pre-development works at Manono’s Camp Colline and assessed and reached an adjudication point for around US$300 million work of pre-mining tenders.
“In addition, excellent progress has been achieved in discussions on the creation of a Special Economic Zone in Manono and the potential refurbishment of the Mpiana Mwanga Hydro-Electric Power Plant.”
Pit floor drilling has commenced to potentially upgrade some inferred resources to indicated resources and the company is also updating the mine plan, conducting geotechnical and hydrogeological investigations, as well as optimising the tailings storage facility (TSF).
Offtake agreements progress
Clarke said: “Our team is now diligently working towards securing multiple offtake agreements and project finance deals and, while we would all like these deals to have been signed and delivered, it does take time and effort to make sure the company secures the ‘right’ offtake agreement and the ‘right’ finance deal for the long-term benefit of AVZ.
“Certainly, once these contracts are executed, the board will be ready to make a final investment decision to mine our flagship project.”
The company is progressing negotiations around financing options with several entities in Australia, Europe, the Middle East and South Africa.