The company has signed Memorandum of Understanding (MoU) with ZJ through which it procures 500 million shares of Avalon in two tranches.
During the first installment, Avalon will issue 100 million shares for the payment of A$5m ($5.2m) within 31 days of signing the agreement, while the remaining 400 million shares will be issued after ZJ makes the payment of A$20m ($21m).
However, the first tranche is subject to conditions including both the companies agreeing on the performance hurdles for the provision of the second tranche funding, and ZJ completing due diligence.
The funds would be used to fund the bankable feasibility study at Viscaria copper project.
Avalon managing director Jeremy Read noted that the investment from the company secures financial support for the Viscaria project and its strategy to add value by completing a BFS on the project.
"In the current difficult financial market conditions, it is an extremely pleasing result for Avalon to obtain such a significant injection of funds and to be fully funded through to the completion of the Viscaria BFS," added Read.
Meanwhile, Viscaria currently has reserves of 49.2 million tons of copper mineralization, with 544,000 tons of copper and 18.9 million tons of iron mineralization containing 6.2 million tons of recoverable iron.
