One ASX All Ordinaries lithium share is having a stellar day on the market today.
The AVZ Minerals Ltd (ASX: AVZ) share price is trading at 82.3 cents at the time of writing, a 12% gain. In earlier trade, it surged nearly 18%.
Let’s take a look at what’s attracting investor attention today.
What did this lithium explorer announce today?
AVZ Minerals revealed it has expedited its agreement with Suzhou CATH Energy Technologies (CATH) on a global joint lithium project.
The Manono Lithium and Tin Project is a lithium development in the Democratic Republic of Congo. It contains lithium pegmatites with a 13km strike length.
CATH is a private investment entity owned by Pei Zhenhua and Contemporary Amperex Technology Co. Limited. AVZ said both have a huge influence on the lithium-ion battery industry.
The company will pay US$240 million in cash for a 24% equity interest in the venture. CATH will also contribute its pro-rata portion of funding towards the project. This was reported to the market in September.
As part of the news announced today, the companies have agreed to waive the following conditions.
- The mining licence for the Manono Project being granted to Dathcom Mining SA
- Dathcom and the DRC government entering into a collaboration development agreement
- The Dathcom board and shareholders making a final investment decision and approving the transaction
Management comment
Commenting on the venture, managing director Nigel Ferguson said:
Finalising our agreement with CATH provides certainty of funding to progress development of the Manono Project, pending the award of our Mining Licence and Collaboration Development Agreement from the Democratic Republic of Congo Government.
We are in close consultation with the DRC Government authorities that are undertaking the Mining Licence assessment and are confident of delivering a favourable outcome for all stakeholders – most importantly the people of the DRC and our shareholders.
AVZ Minerals Ltd share price summary
The AVZ Minerals share price has surged 300% in the past year and almost 6% year to date.
However, in the past month, the company’s shares have dropped more than 11%.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.
AVZ Minerals has a market capitalisation of about $2.8 billion based on today’s share price.
The post Here’s why this ASX All Ordinaries lithium share is surging 13% today appeared first on The Motley Fool Australia.
Should you invest $1,000 in AVZ Minerals right now?
Before you consider AVZ Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ Minerals wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Why AMP, AVZ, Megaport, and NAB shares are pushing higher
- Here are the top 10 ASX shares today
- Why AVZ, Kogan, Panoramic, and Redbubble shares are sinking
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.
from The Motley Fool Australia https://ift.tt/6WC5JUZ
Leave a Reply