AVZ share price rockets 19% on ‘watershed moment’

Man with rocket wings which have flames coming out of them.

Man with rocket wings which have flames coming out of them.

The AVZ Minerals Ltd (ASX: AVZ) share price rocketed out of the gates this morning.

In early trade, the lithium explorer’s shares were up 19% to $1.18.

The AVZ Minerals share price has since pulled back but remains up 6.5% to $1.06.

Why did the AVZ share price rocket higher?

Investors were bidding the AVZ share price higher this morning after the lithium explorer provided an update on the Manono Lithium and Tin Project in the Democratic Republic of the Congo.

According to the release, the Minister of Mines has awarded a mining licence to AVZ’s 75% owned Dathcom Mining SA business for the flagship Manono Project.

The mining licence will cover the entirety of the Roche Dure mineral resource (401 million tonnes at Li20 1.65%) and the Carriere de l’Este exploration target. It does, however, exclude a portion of the land holding to the north. AVZ intends to have discussions with the government in the near future regarding this land.

The company is now advancing its early works program ahead of a final investment decision to commence major works and first production toward the later months of 2023.

“A watershed moment”

AVZ’s Managing Director, Nigel Ferguson, was pleased with the news. He said:

“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.

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 post AVZ share price rockets 19% on ‘watershed moment’ appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.

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