AVZ extends share suspension
Lithium hopeful AVZ Minerals on Friday extended the voluntary suspension of its share trade on the ASX as it still awaits the grant of a mining licence for its Manono lithium and tin project, in the Democratic Republic of Congo (DRC).
AVZ in early May announced that the DRC Minister of Mines had signed a ministerial decree to award the mining licence to Dathcom Mining SA, in which AVZ holds a 75% interest. The mining licence was expected to be issued after the payment of surface rights fees.
However, by May 11, AVZ had requested a suspension of share trading pending the release of an announcement in relation to the mining and exploration rights of the lithium and tin project.
“The company regrets that the voluntary suspension period has lasted longer than was intended. During this period, the company has been actively engaged with the highest levels of the government with respect to the grant of the mining licence and an update regarding its exploration rights for the Manono project,” the company said on Friday.
AVZ said that while it remained confident of a “positive outcome”, it would be necessary to continue the voluntary suspension period as the subject of the initial trading halt remained incomplete.
The suspension will remain in place until July 29, or until an announcement could be made to the market.
In the meantime, the company will continue with its drilling work at Manono, with 48 drill holes planned at the Roche Dure orebody.
“The company’s confidence in the Manono project and continuing lithium-ion battery demand, provides a significant opportunity to further increase the known reserves at Roche Dure, which is designed to add long-term value for our shareholders and underpin the project’s credentials as the largest global undeveloped hard rock lithium deposit,” said MD Nigel Ferguson.
“Following the generation of an exploration target for the historical eluvial and alluvial tin deposits north of the pegmatites at Manono, consultants and drilling companies have been contracted to delineate a selection of prospective deposits for a reverse circulation drilling campaign to investigate the robustness of the mineralisation and extent of the buried palaeochannels, with a view to possibly generating a maiden mineral resource estimate from this first round of drilling.”
