The AVZ Minerals (ASX:AVZ) share price is frozen today. Here’s why

The mineral exploration company is reportedly conducting a $35 million capital raise.
The post The AVZ Minerals (ASX:AVZ) share price is frozen today. Here’s why appeared first on The Motley Fool Australia. –

Shares in AVZ Minerals Ltd (ASX: AVZ) are frozen as the company prepares to announce news of an equity raising. The AVZ Minerals share price ended yesterday’s trade at 16 cents, where it remains.

The mineral exploration company is keeping its cards close to its chest today. However, it’s told the ASX its equity raising will be in the form of an institutional placement and a share purchase plan.

Let’s take a closer look at today’s news from the company.

AVZ Minerals shares freeze over

AVZ Minerals is planning to keep its shares frozen until 2 July, unless it announces news of its placement to the market earlier.

While the company didn’t specify how it will use the capital it plans to raise, the Australian Financial Review (AFR) has reported most of the funds will go towards increasing its share of the Manono Project in Africa to 75%.

The capital raise will reportedly see the company with an extra $35 million to play with.

$30 million worth of new shares are said to have been offered to institutional and sophisticated investors, while $5 million of new shares were presented to existing shareholders.

The placement reportedly involved new shares on offer for 13 cents apiece.

Today’s trading halt is the third the company has undergone in 2021.

About the company

AVZ Minerals is a Perth-based exploration company.

Its focus is on mining lithium, tin and tantalum in the Democratic Republic of Congo.

The company is currently developing the Manono Project. It believes the project could be one of the largest lithium, caesium and tantalum deposits in the world. AVZ Minerals holds a 60% interest in the project.

AVZ Minerals share price snapshot

So far, 2021 hasn’t been a good year for the AVZ Minerals share price.

Currently, it’s 5.8% lower than it was at the start of the year. However, it’s gained a whopping 220% since this time last year.

The company has a market capitalisation of around $462 million, with approximately 2.9 billion shares outstanding.

The post The AVZ Minerals (ASX:AVZ) share price is frozen today. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in AVZ Minerals Ltd right now?

Before you consider AVZ Minerals Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ Minerals Ltd wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Is your money safe in Commonwealth Bank (ASX:CBA) shares right now?
Sonic (ASX:SHL) share price hits all-time high today
Up 638% in 1-year, why the Chalice Mining (ASX:CHN) share price is gaining today
ASX 200 up 0.5%: Telstra asset sale, AGL demerger, Nuix crashes again

Lockdown fatigue? Expert explains why they could be great for ASX shares

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!