The Avz Minerals Ltd (ASX: AVZ) share price has been amongst the biggest movers on the market once again.
The mineral exploration company's shares are up 18% to 13 cents in afternoon trade, stretching its 30 day return to in excess of 200%.
Why have its shares jumped today?
This morning the company announced that it has successfully completed a $13 million placement with strategic investor Huayou Cobalt Group.
The Hong Kong-based company will gain 186 million shares at 7 cents apiece, with an additional 86 million options exercisable at 10 cents apiece on or before April 15 2019.
These funds will be used primarily for the planned drilling and the initial metallurgical test work programs at the company's promising Manono lithium project in the Democratic Republic of Congo.
Should you invest?
Earlier today I labelled Avz as one of the 10 most exciting small-cap shares on the Australian share market because of the significant potential of its Manono project.
The assay result of the first of seven drill holes at the site revealed the presence of high-grade lithium mineralisation.
Should the next six drill holes return favourable results as well, then Avz could be sitting on top of an extremely lucrative resource. Especially considering how demand for lithium is expected to grow strongly in the future, resulting in high prices for the element.
Whilst I would suggest investors keep their powder dry until drilling is completed, I think Avz is deserving of a spot on most watchlists following the first drill hole result and this placement.
In the meantime, investors with a high tolerance for risk and wanting to gain exposure to the lithium miners could consider an investment in either Galaxy Resources Limited (ASX: GXY) or Kidman Resources Ltd (ASX: KDR).
