The AVZ Minerals Ltd (ASX: AVZ) share price surged then fell today after the company announced a co-operation agreement with the government of Congo.
Shares in the company were trading 6.25% higher at 17 cents late this afternoon before slipping back to their opening price of 16 cents just at the market close.
Let's take a look at what mineral explorer announced.
Image source: Getty Images
Government agreement
Today, AVZ Minerals announced that the Democratic Republic of Congo (DMC) had approved a draft co-operation agreement with the company.
The company said the document approval would aid the company's Manono Lithium and Tin Project, adding the draft represented "significant financial opportunity".
With the new DMC government being sworn in on April 27, the company said the news represented a step in the right direction for the Manono Special Economic Zone (MSEZ). It noted the agreement could lead to tax concessions and import duty relief.
AVZ managing director Nigel Ferguson welcomed the news, saying:
The final co-operation agreement will deliver significant long-term economic benefits for the project, as well as further underpinning our substantial investment in the DRC.
It will also deliver long-term benefits for the people of the Manono region, including access to improved health and education services, stable employment opportunities and upgraded infrastructure including electricity supply.
The company noted that the agreement was still in the draft stage, with the AVZ Minerals team in DRC "working hard" to finalise negotiations. It expects the DRC Government to sign the formal decree "as soon as practicable and hopefully in May 2021".
About the AVZ Mineral share price
AVZ Minerals is an Australian mineral explorer. The company's key operation is the Manono project in the Democratic Republic of Congo in Africa.
While the mine is not yet operational, the company continues to focus on progressing it.
The AVZ Mineral share price has had a ripper year so far, gaining 166% over the past 12 months. This exceeds the All Ordinaries Index's (ASX: XAO) more modest 33.5% gain.
