Manono Lithium and Tin Project Corporate Update

AVZ Minerals Limited (ASX: AVZ or “the Company”) is pleased to provide an operational update on the progress of various matters relating to its flagship Manono Lithium and Tin Project (“Manono Project”).
Transaction Implementation Agreement (“TIA”) As previously announced on 27 September 2021, the Company has entered into a deal with CATH to develop the Manono Project.
Proceeds from the transaction will fund a majority of project development capital. CATH has now paid the US$20 million break fee (held in an escrow account). The completion of the transaction is subject to the satisfaction or waiver of several conditions precedent before 30 November 2021, which the parties are co-operatively working toward.

Permis d’Exploitation (“Mining Licence”) progressing well As previously announced, all documents in relation to the Mining Licence were submitted to the relevant authorities within the DRC government in May 2021.
The process for the award of the Mining Licence is focused around four key elements:
I. Environmental approvals;
II. Proof of financial capability;
III. Favourable cadastral opinion; and
IV. Favourable technical opinion.
AVZ is pleased to advise that it has received favourable outcomes for points I – III, with positive feedback received from the Department of Mines in relation to the final point concerning the technical opinion on the DFS. Following the expected receipt of the favourable technical opinion, the Minister of Mines has 30 days to then award the Mining Licence.
A meeting of Council of Ministers is expected to be held shortly to deliberate on the award of the Mpiana Mwanga HEPP Agreement and Prime Ministerial Decree for the Collaboration Development Agreement.
Bankable Feasibility Study (“BFS”)
AVZ will issue a BFS to the market following the anticipated granting of the Mining Licence. The Company has made the decision to issue a BFS rather than an updated Definitive Feasibility Study (“DFS”) as the financial institutions require submission of a bankable level study which
requires the award of the Mining Licence.
As previously announced, the Company is progressing a possible expansion scenario study. The evaluation of the expansion scenario is a key term of the TIA with CATH and, following its completion, will be considered by the Board.
Project Debt Funding Update
Management is confident that it will be able to shortly announce the appointment of a Mandated Lead Arranger (“MLA”) to lead the syndicated debt funding facility for the Manono Project.
Subject to closing the deal with CATH, more than 50% of project funding is secured enabling a Final Investment Decision “FID”. The FID will kickstart project construction and ensure Dathcom will have sufficient equity capital to fund the first 6 – 8 months of project construction capital, with Financial Close (“FC”) for debt financing expected in Q2 2022.
The deal with CATH has significantly de-risked the Project from a debt financiers perspective and introduces additional appetite for the Manono Project debt financing requirements.
DRC Business Forum
AVZ has been invited to participate in the DRC Business Forum scheduled to be held in Kinshasa on 8-9 November 2021. Stakeholders from around the globe have been invited with the aim of developing a battery minerals industry in Africa. AVZ is keen to support this exciting initiative and assume a critical position in the development of the battery mineral industry in Africa.