At time of writing, shares of AVZ Minerals Ltd [ASX:AVZ] are up 5%, trading at $.0945, on the back of significant volume.
If you are not in the know, AVZ is a mining company that is developing the Manono Project, which is potentially one of the world’s largest lithium-rich LCT deposits.
LCT stands for lithium, caesium and tantalum and the proposed mine would be located in the Democratic Republic of Congo in central Africa.
All of these materials have uses in high-end electrical gadgets as well as scientific applications.
Of these raw materials available at the Manono Project site, the most interesting is lithium.
Lithium is a core component in lithium-ion batteries, a type of battery that is used in electric cars.
AVZ Minerals share price reacts to positive announcement
AVZ minerals had previously been in a trading halt pending an announcement regarding drilling at the Manono Project site.
Well, the results are now in and investors like what they see.
According to their Managing Director, Nigel Ferguson, ‘with these new results, we will very likely see an increase in resource tonnages’.
In light of this, the company is also moving to secure strategic funding for the project.
Executive level meetings have been held at which AVZ Minerals has ‘been presented with a number of financing options including, but not limited to, equity investment, off-take pre-payments, project debt as well as other variations and combinations of these instruments.’
Given the scale of the project, this funding could be essential for AVZ Minerals future growth.
Luckily AVZ Minerals has been operating limited debt, with just $4.4 million dollars in liabilities against $67.1 million in total assets.
This stock could be one to watch over the coming days.
For Money Morning
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