The AVZ Minerals Ltd (ASX: AVZ) share price has been a very strong performer on Thursday.
At one stage today the lithium-focused mineral exploration company’s shares were up as much as 27% to a 52-week high of 12.5 cents.
The AVZ Minerals share price has given back some of these gains but is still up 17% to 11.5 cents at the time of writing.
Why is the AVZ Minerals share price rocketing higher?
Investors have been buying the company’s shares today after the release of a very positive announcement.
According to the release, the company has secured a strategic, long-term offtake partner with GFL International Co. It is the subsidiary of China’s largest lithium compounds producer, Ganfeng Lithium.
The release explains that the two parties have signed an offtake agreement for spodumene concentrate (SC6) that will see Ganfeng Lithium purchase 160,000 metric tonnes per annum from its Manono Lithium and Tin Project.
The initial term is for five years but has an option to be extended for a further five years.
AVZ’s Managing Director, Nigel Ferguson, commented:
“We are very pleased to finalise these discussions with GFL and to sign our first lithium offtake agreement. The fact we have signed our first offtake agreement with China’s largest lithium compound producer just reinforces our belief that the Manono Project is world-class.”
“GFL has signed on to take 30% of the Manono Project’s initialsaleable SC6 yearly tonnage, which is a massive endorsement for our project. Over the coming months, I look forward to finalising other offtake agreements which are currently under negotiation, not only for our lithium products but also for our tin and tantalum materials.”
“This SC6 offtake agreement with GFL will also greatly assist the Company in meeting any conditions precedent that are required for our prospective financiers. I look forward to updating our shareholders and the market with respect to the Company’s financing options for the Manono Project early in the New Year.”
This Tiny ASX Stock Could Be the Next Afterpay
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…
Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.
Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!
See how you can find out the name of this stock
Returns as of 6th October 2020
More reading
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why the AVZ Minerals (ASX:AVZ) share price rocketed 27% higher appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3mIOgjL
Leave a Reply