AVZ Minerals Limited (ASX: AVZ, OTCQX: AZZVF) has been awarded a Ministerial Decree by the Minister of Mines for Permit d’Exploitation for its flagship Manono Lithium and Tin Project in the Democratic Republic of the Congo (DRC).
Award of the Mining Licence
The signing of the Ministerial Decree to award the Mining Licence to Dathcom Mining SA, in which AVZ holds a 75% interest via its wholly owned subsidiary AVZ International Pty Ltd (AVZI), is now with the Cadastre Minier (CAMI), which operate under the supervision of the Minister of Mines, to officially award the Mining Licence.
In accordance with DRC Mining Code, CAMI are required to calculate the surface rights fees payable by Dathcom and provide the Mining Licence following receipt of this payment. The Mining Licence to be issued, will cover the entirety of the Roche Dure JORC Mineral Resource (401 million tonnes at Li20 1.65%) and the Carriere de l’Este exploration target.
The Ministerial Decree excludes a portion of the land holding to the north, which will be required to be renewed under a five-year Permit de Research (PR or Exploration Licence) to Dathcom, with discussions regarding the terms of the ongoing joint venture agreement on the PR to be finalised with the DRC Government in the near future, in addition to finalising discussions for the Collaboration Development Agreement with DRC Council of Ministers to provide wide ranging support for the Manono Project.
“The receipt of the Ministerial Decree to award the Mining Licence is leading to a watershed moment for AVZ and our partners, with the official award of the Mining Licence from CAMI expected in a matter of days<” AVZ’s Managing Director, Nigel Ferguson, said.
“This paves the way for AVZ to start developing what is arguably one of the most important new mining projects in the world that will significantly contribute to the global green energy transition, while also uplifting the lives of the Congolese people who will contribute and receive sustained benefits from the Project for many decades to come.
“The company is advancing its early works program ahead of a Final Investment Decision to commence major works and first SC6 production toward the later months of 2023. We have maintained a strategic approach to developing our world-class Manono Project and we will continue to tick every box that will deliver long-term value to what we believe is the largest global hardrock lithium resource, based on current Proved and Probable Ore Reserves.”
AVZ’s Majority Interest in the Manono Project
Following the official award of the Mining Licence, and under the terms of the Joint Venture Agreement, La Congolaise D’Exploitation Miniere SA (Cominiere) who owns 25% of Dathcom will cede 10% of its interest to the DRC Government. AVZI is in advanced discussions with the DRC Government regarding the purchase of Cominiere’s remaining 15% interest in Dathcom exercising AVZI’s rights under terms of the existing Dathcom Shareholder Agreement.
AVZ confirms that it retains legal title to a 75% interest in the Manono Project and is progressing the sale of an indirect 24% project interest to Suzhou CATH Energy Technologies under a multi-faceted Transaction Implementation Agreement (TIA), which is due to complete this month.
Post completion of the TIA, AVZ will hold an indirect interest in 51% of the Manono Project (excluding the 15% interest to be acquired from Cominiere, which is subject to ongoing discussions with the DRC Government).
For further information please visit: https://avzminerals.com.au/
