After a wobbly couple of weeks, the AVZ Minerals Ltd (ASX: AVZ) share price is back on form on Wednesday.
In morning trade, the lithium developer's shares are up 10% to $1.13.
While this means the AVZ share price is still trading well short of its recent record high of $1.37, it remains up over 500% since this time last year.
Why is the AVZ share price racing higher?
The catalyst for the rise in the AVZ share price on Wednesday has been the release of an update on the company's Manono Lithium and Tin Project in the Democratic Republic of the Congo.
According to the release, the company has received a positive technical opinion from the Department of Mines, which paves the way for an imminent decision on the award of a mining licence for its flagship project.
The release notes that to receive a mining licence the operation needs to satisfy four key elements. These are environmental approval, proof of financial capability, favourable cadastral opinion, and favourable technical opinion.
As the Manono Project has now received favourable outcomes on all four points, management appears confident that the award of a mining licence could be imminent.
Final hurdle is overcome
AVZ's Managing Director, Nigel Ferguson, was pleased with the news and notes that this was the final hurdle the company needed to overcome for the mining licence.
He said: "The receipt of the favourable technical opinion for the DFS is the final procedural hurdle ahead of the Minister of Mines pending decision on the award of the Mining Licence which we now eagerly await. This will also be the catalyst to advance the Collaboration Development Agreement which will underpin the partnership between the Government and the developers of the Manono Project."
