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This will be acquired through increasing its stake in Dathcom Mining, which holds 100 per cent of the Manono project.

Upon the completion of the agreement, AVZ will own 75 per cent of Manono with the DRC Government holding the remaining.

AVZ already increased its stake in Dathcom Mining by 5 per cent to 65 per cent last year.

“The recently completed definitive feasibility study clearly demonstrated our Manono project is very robust, with strong financial metrics,” AVZ managing director Nigel Ferguson said.

“This additional equity in the Manono project will add significantly to the project’s bottom line and net present value and is critical to AVZ’s ongoing discussions with prospective financiers.”

AVZ expects Manono’s net present value, or future value of the project, to increase from $US1.41 to $US1.76 billion before tax.

AVZ is required to complete the payment within 12 months of executing the agreement, subject to relevant approvals.

The Manono project covers 188 square kilometres in the mid-Proterozoic Kibaran Belt which stretches into southwest Uganda.