AVZ Minerals Ltd (ASX:AVZ) has opted to extend the end date of a major funding agreement with Suzhou CATH Energy Technologies to February 28, 2023, allowing extra time for formalities to be completed.
The company says both parties remain committed to close the transaction implementation agreement (TIA) and the development of the Manono Lithium and Tin Project.
AVZ recently launched legal action in the Democratic Republic of Congo and ICC International Court of Arbitration to confirm the status of its interest in the Manono Project, of which the company claims 75% with pre-emptive rights to a further 15% of the project’s ownership.
Read: AVZ Minerals takes legal action as it seeks to affirm interests in Manono Project
CATH funding agreement
AVZ Minerals and CATH entered into a TIA in September 2021, wherein CATH agreed to provide US$240 million in funding to accelerate the development of the Manono Lithium Project in return for a 24% equity interest.
Read: AVZ Minerals progresses transaction with Suzhou CATH to develop Manono Lithium and Tin Project
The investment will cover the majority of project financing for Manono, with extra funding expected be provided by CATH to fund its pro-rata portion of the project’s development.
Should AVZ’s rights over the project be ratified by the courts, AVZ will retain a controlling 51% interest in Manono once the transaction is complete, as well as its position as the property’s lead developer.