AVZ Discussion 2022
- Thread starter GazDix
- Start date
Winenut
GO AVZ!!!!
Gee! It seems like only yesterday.....
Sarama Resources (SSR) has secured funding for their ICSID case through Locke .
Summary of Locke Facility
Non-Recourse Loan: The US$4.4 million loan is non-recourse, meaning repayment is only required if the Company wins or settles its arbitration claim.
No External Security Required: The loan is secured solely by the arbitration claim and potential proceeds, with no liens or encumbrances placed on the Company’s other assets or operations.
Isolated to Claim Proceeds: Repayment obligations are limited to proceeds from a successful award or settlement in the arbitration. If the claim is unsuccessful and there is no default, the Company has no repayment obligation.
Business Operations Unaffected: The Company can continue operations and consolidate assets outside the arbitration claim chain without any impact from the loan facility.
Limited Recovery for Funder: In the event of a material adverse change, the Funder can only recover unspent funds, with no claim on other Company assets.
Flexible Repayment Structure: Funder’s return and repayment amounts depend on successful claim proceeds and are structured by the LFA’s confidential distribution priorities.
Is AVZ the next cab off the rank ?
Summary of Locke Facility
Non-Recourse Loan: The US$4.4 million loan is non-recourse, meaning repayment is only required if the Company wins or settles its arbitration claim.
No External Security Required: The loan is secured solely by the arbitration claim and potential proceeds, with no liens or encumbrances placed on the Company’s other assets or operations.
Isolated to Claim Proceeds: Repayment obligations are limited to proceeds from a successful award or settlement in the arbitration. If the claim is unsuccessful and there is no default, the Company has no repayment obligation.
Business Operations Unaffected: The Company can continue operations and consolidate assets outside the arbitration claim chain without any impact from the loan facility.
Limited Recovery for Funder: In the event of a material adverse change, the Funder can only recover unspent funds, with no claim on other Company assets.
Flexible Repayment Structure: Funder’s return and repayment amounts depend on successful claim proceeds and are structured by the LFA’s confidential distribution priorities.
Is AVZ the next cab off the rank ?
TheCount
Regular
RIP John25.
Carlos Danger
Top 20
'Security of the Facility is limited to the Claim, associated potential proceeds and all benefits arising from the property and assets of the subsidiary companies comprising the ownership chain pertaining to the Project'
12 months for AVZ and Locke to agree on an appropriate $ or % repayment from the ICSID claim?
20m USD is a very particular number imo
Frank
Top 20
CashKing
Regular
Schnitzelfresser
Regular
Not sure I am gonna be happy about a closure of Locke funding or not. Only results in the long long long game.
IMO we need the Locke funding not just to fund our arbitration activities, but to show proof that our opponents plan to bleed us into bankruptcy is not viable. For now it seems DRC is ignoring our efforts to negotiate, no doubt with our enemy whispering into their ears that we are a done concern and no real threat. Having our litigation funded however would provide us with a bit more sting in our tail and boost the pressure on those entities to sit down with us and figure something out.
Cumquat Cap
Regular
Agreed Roon, they are hoping we go into VA and Locke funding will show that’s at least 3 years from happening. Stifling any purported good work they are doing in improving the business climate.
Not once has a DRC govt official mentioned avz in public, they are scum and orchestrated this for years post DFS with Felix being the lead and most likely largest benefactor of Chinese bribes. Terrible business climate, we’re gonna have to teach them a lesson. Trump will be a lot harsher than Biden has been which may work in our favour.
Not once has a DRC govt official mentioned avz in public, they are scum and orchestrated this for years post DFS with Felix being the lead and most likely largest benefactor of Chinese bribes. Terrible business climate, we’re gonna have to teach them a lesson. Trump will be a lot harsher than Biden has been which may work in our favour.
What's Locke's cut ? No mention in the SRR announcement .
I’m sure nothing for nothing. They will do very well out of the deal. Something for the shareholders is better than nothing at the end of the day.
Carlos Danger
Top 20
'The Funder’s return is directly tied to the successful award and settlement of the Claim, with the total amount payable being a function of time and total Proceeds receipted. The priorities for distribution of receipted Proceeds are set out in the LFA and where commercially and legally sensitive, shall remain confidential.'
Sarama 'will seek full compensation for the loss suffered which may include, but will not be limited to, the value of the Permit, the value of the Company’s historic investments in the Project, the value of the Project at the time the Permit was withdrawn and damages the Company has suffered as a direct result of the Government’s actions'
Meanwhile AVZ's 'main purpose of the ICSID Arbitration Request is to seek various remedies for the failure of the DRC and its administrative departments, to comply with obligations under the DRC Mining Code, in particular in the implementation of the various measures that should have led to the issuance of an Operating Permit to Dathcom resulting from the Research Permit "PR 13359", for the development of the Manono
Project'
After the decision on interim measures at the ICSID 'the tribunal has asked that Dathcom expressly confirm that should the DRC comply with these interim orders, AVZI, GLH and Dathcom will request the release of the PE and if the DRC releases it, they will progress the development of the project immediately. The Company will take the necessary steps to procure that AVZI, GLH and Dathcom provide that confirmation.'
How does Locke get paid back if the DRC government agree to grant us the licence during negotiations?
Carlos Danger
Top 20
We had 18.9m AUD in da bank as at June 30 2023 and 11.7m AUD as at September 30th 2023 while the MoU negotiations were occurring after the registration of the ICSID claim
And that went nowhere
Maybe the Locke funding will get the DRC government back to the negotiation table. Or perhaps the DRC won't play ball regardless unless we agree that under the mining code submitting the waiver means that Dathcom no longer legally holds the north imo
Could also ask , how do we negotiate with strength without funding? What would make the DRC come to the table ? Only way I can think of is if the Yanks are playing a part .
Are we still in the Term Sheet phase of negotiations with Locke ? If so is there not a $1mill break free payable by AVZ ? Locke sitting pretty .
Today's Global Arbitration Reviews (GAR):
globalarbitrationreview.com
A Finnish court has ordered the freezing of Russian state assets following a request from Ukraine’s state-owned gas producer and distributor Naftogaz as it seeks enforcement of a $US5 billion Hague tribunal compensation award. The compensation follows Russian expropriation of their oil and gas properties in Crimea after Moscow annexed the peninsula in 2014.
Naftogaz said that the assets include “real estate and other assets valued at tens of millions of dollars”. Properties frozen include the Russian Science and Culture Centre in Helsinki and a plot of land of about 3300 square metres, both of which were impounded last year.
Take note Emperor-for-life King Felix-the-corrupt: Five billion US dollars is a big number, but its nothing compared to what you grubs are facing.
Cheers
F
Naftogaz freezes Russian assets in Finland
Ukraine’s Naftogaz says a Finnish court has granted its request to freeze Russian state-owned assets worth tens of millions of dollars in aid of its bid to enforce a US$5 billion investment treaty award.
globalarbitrationreview.com
A Finnish court has ordered the freezing of Russian state assets following a request from Ukraine’s state-owned gas producer and distributor Naftogaz as it seeks enforcement of a $US5 billion Hague tribunal compensation award. The compensation follows Russian expropriation of their oil and gas properties in Crimea after Moscow annexed the peninsula in 2014.
Naftogaz said that the assets include “real estate and other assets valued at tens of millions of dollars”. Properties frozen include the Russian Science and Culture Centre in Helsinki and a plot of land of about 3300 square metres, both of which were impounded last year.
Take note Emperor-for-life King Felix-the-corrupt: Five billion US dollars is a big number, but its nothing compared to what you grubs are facing.
Cheers
F
Last edited:
Winenut
GO AVZ!!!!
If we get granted the licence then you could go mining and eventually pay back Locke?
Long timeframe given....
Or you get the licence and maybe someone is willing to effectively buy that from you because they know it's a very valuable resource and you repay Locke
Shorter timeframe possibly
Am I being my usual simple self?....
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