Monday, December 5 2022

ASX lithium stock, AVZ Minerals [ASX:AVZ] will remain on voluntary suspension for a while longer as it continues to resolve regulatory issues surrounding its Manono mining permit.

It has now been two months since AVZ went into voluntary suspension as it seeks a mining license for its flagship Manono Lithium project in the Democratic Republic of Congo (DRC).

Still, the suspension is expected to continue until at least July 29 as AVZ continues to reach a resolution.


AVZ Mining License Update

AVZ Minerals reappeared with an update regarding its voluntary suspension and commercial shutdown, while the company awaits its mining license for its flagship Manono project.

The company has seen fit to suspend all trading until it has secured its mining permit, a process that has been ongoing since early May.

The miner said he was ‘actively engaged with the highest levels of government regarding the granting of mining permits.

AVZ expressed confidence that there will be a positive outcome.

The company said:

In order to allow sufficient time for a decision to be made regarding the granting of the mining permit and an update regarding its exploration rights for the Manono project, the Company has requested a further extension of the voluntary suspension of the ‘ASX until commencing trading on July 29, 2022 or an earlier market announcement regarding its mineral and exploration rights for the Manono Project.’

Operations resume

Despite the status of its mining license, AVZ separately disclosed that diamond drilling has resumed on the Manono project.

The drill program at Roche Dure has been expanded — 15,000 meters in area to cover ore targets at 200 meters depth.

The company’s reverse circulation drilling at Manono will soon begin, a project focused on the tin and tantalum deposits.

AVZ Managing Director Mr. Nigel Ferguson said:

I am pleased to confirm that drilling has resumed at Roche Dure.

Drilling at the northeast end of the known ore body, in areas previously inaccessible due to surface water, is intended to significantly increase the known lithium-rich ore resources in this area.

This will underpin our future plans to extend the expected mine life at Manono, should this drilling campaign prove successful.

The company’s confidence in the Manono project and the continued demand for lithium-ion batteries provides a significant opportunity to further increase the known reserves of Roche Dure, which is designed to add long-term value for our shareholders and strengthen the Project credentials as the largest undeveloped global site. hard rock lithium deposit.

Project ASX:AVZ manono

Source: AVZ

AVZ fights for a mining license

In May, the Australian Financial Review quoted short-term hedge fund research firm Boatman Capital, which was skeptical of AVZ’s favorable resolution to the regulatory quagmire it finds itself in.

According to Boatman Capital:

We believe AVZ Minerals is being outmaneuvered by a group of powerful Chinese battery makers, who are plotting to take over the Manono lithium project.

We believe that, at best, AVZ faces months or years of legal battles to block Zijin Mining and claim shares from [vendor] Dathomir mining resources. At worst, AVZ will lose control of Manono and end up with only 36% of the project. We have obtained evidence that leads us to believe that the likely result will be negative for AVZ.

Obviously, AVZ wants to prevent such an outcome – even if it means going into voluntary suspension for months.

Investors will follow this story with interest.

Now, while lithium stocks have been hit hard lately, the world where most of us drive electric vehicles is still in the future, and the world will need a lot of battery material to get us there. .

Our small cap expert Callum Newman recently reported on three battery materials stocks.

Callum thinks one of three battery stocks in his latest report’could be one of the most exciting nickel projects in the world‘.

For more, read Callum’s latest drum materials report, “Elon’s Chosen Ones,” here.


Kiryll Prakapenka
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