The AVZ Minerals Ltd (ASX: AVZ) share price has been on fire on Monday.
In afternoon trade, the lithium explorer's shares are up 14% to 16.5 cents.
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Why is the AVZ Minerals share price racing higher?
Investors have been fighting to get hold of the company's shares following the release of an update relating to its Manono Lithium and Tin Project in the Democratic Republic of the Congo (DRC).
According to the release, all the required documentation to support its application for the Manono Project mining license has been lodged and accepted for consideration by the Cadastre Minier in Kinshasa.
The documentation and formal application, which were submitted by AVZ's majority-owned DRC company, Dathcom Mining SA, will now be assessed by the Government prior to approval of the granting of the mining licence as soon as practicably possible.
What now?
While there's still a long road ahead, management appears optimistic that everything is in place so that it can maintain its schedule to deliver the first spodumene concentrate on train by the first quarter of 2023.
AVZ's Managing Director, Mr Nigel Ferguson, said: "Lodging our formal application for a Mining Licence for the Manono Project is yet another significant milestone for the Company. It marks the culmination of our highly strategic and well executed exploration programme and is another signal that the Company is rapidly advancing towards the construction phase of our mining project and, ultimately, moving into production."
"We expect granting of the Mining Licence for the Manono Project to be expedited by the DRC Government so that we can maintain our construction schedule to deliver the first SC6 on train by Q1 2023. A Mining Licence will also allow the Company to quickly progress the Manono Project to a 'bankable' study level, set as a condition precedent and as required by prospective financiers of the Manono Project."
Mr Ferguson concluded: "The optimised DFS [definitive feasibility study] being completed will provide an updated financial projection on the Manono Project incorporating the results of the optimised mine redesign which is currently underway, the FEED study which is progressing smoothly under the guidance of Mincore Pty Ltd, and conditions relating to the Special Economic Zone for Manono (MSEZ) which is progressing well."
