Shares in AVZ Minerals surged after the junior Australian miner announced the acquisition of a lithium deposit in Africa.
A short time ago, they were up 73% to $0.033.
The company is buying a 60% interest in the 188 square kilmetre Manono Project, said to be one of the world’s largest lithium-rich pegmatite deposits, in the Democratic Republic of Congo.
Lithium, a key ingredient in batteries to store solar power and to drive electric cars, is the latest commodity to spark an exploration frenzy among Australian miners.
AVZ will pay state-owned enterprise Cominiere $US6 million ($A7.8 million) in cash in installments over three years and privately-owned Dathomir Mining Resources US$750,000 ($A980 million) in cash plus 260 million shares. Other related parties get another 160 million shares.
Cominiere will end up with 30% and Dathomir 10%.
To fund the deal, AVZ has completed a bookbuild for a placement to institutional and sophisticated investors of up to 250,000,000 shares at an issue price of 2 cents to raise up to $A5 million.