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AVZ Minerals to Increase Equity Stake in Manono Lithium & Tin Project to 75%

Mining News - Published on Mon, 21 Sep 2020

Image Source: AVZ Minerals Manono Lithium Tin Project
AVZ Minerals Limited has executed a Share Sale Purchase Agreement for an additional 10% equity stake in Dathcom Mining SA from its joint venture partner, Dathomir Mining Resources SARLU. Dathcom Mining holds 100% of the Tier 1 Manono Lithium and Tin Project. Under the Agreement, AVZ has paid US$500,000 to Dathomir Mining as an advance payment. The remaining US$15 M (US$15,000,000) will be paid to Dathomir Mining at any time within 12 months of the Agreement being executed, or as soon as AVZ secures a minimum of US$50 M project financing.

Should payment not be made within 12 months of executing the Agreement, AVZ will forego its US$500,000 advance payment and lose the rights to secure the additional 10% equity in the Manono Project.

Alternatively, the Agreement provides for AVZ to secure a minimum 2.5% equity shareholding in Dathcom Mining and thereafter in pro rata amounts up to the maximum 10% stake during the 12-month period.

An Extraordinary General Meeting of Dathcom Mining will need to be convened to approve the sale of Dathomir Mining's remaining equity in Dathcom Mining to AVZ Minerals. There is no other material terms or condition precedent other than as disclosed above.

Upon completion of both Agreements, AVZ will own 75% of the joint venture company, Dathcom Mining SA, which holds 100% of the Manono Project Licence PR13359. The remaining 25% of the joint venture company is owned by La Congolaise D'Exploitation Miniere SA, of the DRC government. Dathomir Mining will no longer hold equity in the project and, as such, will no longer be required to contribute pro rata to the ongoing operating expenses of the Manono Project.

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Posted By : Yogender Pancholi on Mon, 21 Sep 2020
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