Today, AVZ Minerals Ltd [ASX:AVZ] entered into a strategic relationship with Zhejiang Huayou Cobalt Co Ltd, through its group company Huayou International Mining (Hong Kong) Ltd.
The strategic agreement is non-binding and non-exclusive.
At time of writing, AVZ’s share price is trading lower at $0.055, down 9.84%.
AVZ’s Manono project
As stated in the announcement, AVZ and Huayou are focused at bringing together and strengthening the Manono Lithium and Tin Project, located in Democratic Republic of Congo (DRC).
Under the agreement, AVZ can take Huayou’s experience in the DRC and mainland China and use it in its Definitive Feasibility Study at Manono.
Huayou can also offer financing, offtake financing, strategic services, EPCM and cost-effective transport of product to its last destination.
As stated in the announcement, AVZ and Huayou are focused at bringing together and strengthening the Manono Project.
AVZ Managing Director Mr Nigel Ferguson Said:
‘AVZ values its existing relationship with Huayou very highly and this new agreement will see the two companies come even closer to advance the Manono Project. We believe that bringing Huayou’s tremendous mining expertise to bear on the DFS, financing and offtake negotiation will accelerate the commercialisation of the largest lithium ore body on the ASX and yield tremendous value for AVZ shareholders.’
Additionally, the President of Huayou Cobalt Group, Mr Hongliang Chen said:
‘Huayou is pleased to have joined AVZ in a Strategic Relationship to progress the Manono Lithium and Tin Project. This project is one of the standout development projects globally in our view. It has the potential to deliver a premium grade product to market and we expect to work closely with AVZ to maximise the potential of the Manono Project.’
AVZ’s 2019 share price outlook
The strategic relation between AVZ and Huayou is set to promote a relationship beneficial for all stakeholders.
It seems after previous tension, the two groups have come together in what is a positive development for both companies, despite AVZ’s share price taking a bit of a hit today.
More to come.
For Money Morning
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