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Australian lithium specialist, AVZ Minerals (ASX:AVZ), has continued its stellar February with the announcement of a successful $9.8 million share placement.

Announced by AVZ yesterday, the placement along with a recently oversubscribed Share Purchase Plan, clears the way for the company to achieve its goal of delivering the Definitive Feasibility Study for its Manono Project in 2019.

News of the announcement saw AVZ’s share price jump to be up 16 percent at one point, with the stock having its highest daily volume since June 2018.

The $9.8 million raising was corner-stoned by a new strategic investor, Lithium Plus, and existing strategic investor Huayou Cobalt Group.

The placement also received strong support from a host of Australian and international institutions and sophisticated investors.

“This placement together with the oversubscribed SPP will leave AVZ fully funded to final investment decision” AVZ Managing Director, Nigel Ferguson commented.

“I would like to thank Huayou Cobalt Group for its continued support and also welcome Lithium Plus and a number of new Australian and global institutions to our register. We look forward to working with Huayou Cobalt Group and Lithium Plus in developing the World-Class Manono Lithium and Tin Project” he added.

Lithium Plus, a specialist lithium company led by Mr. Bin Guo, subscribed for $3 million in the Placement for an initial 3.46 percent interest in the company.

Mr. Guo is also a director of North American Lithium Inc, a Canadian mining firm currently developing and commissioning an open pit lithium carbonate mine and processing plant near Val d’Or, Quebec. The company is a subsidiary of Chinese electric vehicle (EV) battery maker CATL, a supplier to Volkswagen, GM, BMW, Jaguar, Fiat, Chrysler, Nissan, Hyundai, Honda, Ford, Volvo and Audi.

AVZ’s ongoing strategic investor, Huayou Cobalt Group, maintained its 9.3 percent interest in AVZ with a $1 million subscription in the placement.

The group is one of the world’s largest manufacturers of cobalt chemicals for use in batteries and has extensive in-country experience with a number of established mining operations within the Democratic Republic of Congo.

AVZ’s successful capital raising reflects a growing confidence in lithium and the commodity’s EV lithium-ion battery tied future.

In January 2019 China recorded 187,175 passenger and commercial electric vehicles sales, a 188 percent jump.

The figures reflect Beijing’s ongoing commitment to make EV’s 20 percent of national vehicle sales by 2025.

This content is produced by Star Investing in commercial partnership with AVZ Minerals. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.