AVZ Discussion 2022

[David Krappenschitz]

Say it's a cash payout, i.e. AVZ receives cash from Kobold for the stake in Manono project. Can that then distributed to SHs in a way that allows CGT discount benefit? Would assume if paid as dividend it would be taxed the same as standard income tax?
Would management doing a share buyback be something that allows shareholders to get the 50% CGT discount?

 

[KentCStrait]

Say it's a cash payout, i.e. AVZ receives cash from Kobold for the stake in Manono project. Can that then distributed to SHs in a way that allows CGT discount benefit? Would assume if paid as dividend it would be taxed the same as standard income tax?
Would management doing a share buyback be something that allows shareholders to get the 50% CGT discount?

This is going to enrage people, and rightly so given the Australian Government has done absolutely nothing for us, but the company is going to have to pay tax on the KoBold payout. And then we're going to have to pay tax again. To trigger CGT discounts, and minimize tax it's should be a share buyback plus a franked dividend. Prepare yourselves, we are going to get fucked again, just the degree of lubrication used is going to depend on how the return of our money is structured.

Also, even if the cash hits AVZ's account tomorrow, it's likely going to 6 months plus before we see a cent. ASIC and the ATO are going to want their say in it.

 

[dollarbills]

I really wish Kobold just buy out AVZ. That would be an easy CGT event.. Hopefully Nigel can persuade them to do so and perhaps some of the AVZ staff will stay on and work for Kobold.

 

[Mute22]

 

[Woogr]

That doesn’t read like a deals done.

 

[KentCStrait]

So there you have it, direct from the board itself. KoBold is trying to do exactly what the Chinese did—cut us out and take the asset. The only difference is they’re smiling while they do it and wrapping it in geopolitical spin.

 

[Jongo]

From Copilot ...

Key Timeline

Date​	Milestone​	Responsible Party​
17 Jul 2025​	Agreement in Principle signed	DRC / KoBold
31 Jul 2025​	KoBold submits final permit applications Valuation panel appointed	KoBold / AVZ
15 Aug 2025​	Valuation panel delivers fair-market report	Independent Panel
31 Aug 2025​	Payment of first cash tranche (40 %)	KoBold (via escrow)
15 Sep 2025​	Issuance of equity tranche (60 % in KoBold shares)	KoBold
?​	Permit-Issuance Bonus paid (5 % of valuation)	Kobold
?​	First-Discovery Bonus paid (10 % of valuation), Upon first resource announcement	Kobold

I am expecting that the Kobold payments to AVZ will come in stages as described in my post from Saturday. However, after the AVZ fair value terms are finalised, perhaps AVZ will relist on the ASX before AVZ returns funds to shareholders. This approach will mean that market forces can put a value on AVZ based on the expected future cash flow from Kobold to AVZ. In the case where the AVZ payment includes an equity tranche in Kobold shares, and with the possibility that Kobold becomes publicly listed in the future, I imagine that future AVZ investors will place a high value on this because the future for Kobold is bright.

If AVZ does relist on the ASX, then existing shareholders can choose to sell via the ASX and hence, be eligible for the CGT discount where applicable. Another advantage of this approach is that if the Kobold payments are subject to escrow terms, the existing AVZ shareholders will be able to realise part or all of their profit much sooner and take that long overdue holiday.

 

[Hemicuda]

View attachment 88713

Add kobold to the list Dave

 

[Jongo]

So there you have it, direct from the board itself. KoBold is trying to do exactly what the Chinese did—cut us out and take the asset. The only difference is they’re smiling while they do it and wrapping it in geopolitical spin.

No they are not, and your interpretation is unrealistic and pessimistic.

 

[Panther22]

That doesn't read well to me. Great that we got an announcement but it just doesn't have a good feel about it OR is Kobold just getting it's house in order with DRC before our deal is completed?

 

[David Krappenschitz]

So there you have it, direct from the board itself. KoBold is trying to do exactly what the Chinese did—cut us out and take the asset. The only difference is they’re smiling while they do it and wrapping it in geopolitical spin.

I don't read it the same way, IMO if that were the case it wouldn't state that AVZ is in continued discussions with Kobold (and other parties). To me it's just posturing reaffirming AVZ's strong legal position as it enters further discussions with these parties.

All IMO

 

[KentCStrait]

I don't read it the same way, IMO if that were the case it wouldn't that AVZ is in continued discussions with Kobold (and other parties). To me it's just posturing affirming AVZ's strong legal position as it enters further discussions with these parties.

All IMO

I think you and Jongo need to go back and re-read. We've reported KoBold to ICSID.

 

[dollarbills]

Surely Kobold wont ratfuck AVZ after signing a framework and publicly stating fair compensation?

 

[Skar]

That doesn't read well to me. Great that we got an announcement but it just doesn't have a good feel about it.

Is it applying pressure from both sides? AVZ and Kobold coming at the problem from different angles to get the project unstuck or are we getting shafted?

The DRC are certainly fragmented and built on various factions and [selfserving] interests, so maybe pressure from both sides ss what is needed and AVZ/Kobold are in good standing... if they are under enough pressure they have to make a deal so their problems go away.

I do wonder who the various parties are.

 

[BRICK]

Oh fucking joy town.

Everyone trying to fuck us.

Fuckem all go to court and dont spare the horses

 

[hedrox]

It sounds to me the biggest issue for AVZ is, that they get compensated for the lost northern part as well.
It's all about the $$$ now to find a settlement. The DRC is in breach of the interim orders, because they talk to Kobold to resolve the issues, instead of talking to AVZ.

 

[Dave Evans]

08/05/2025

Yahoo Finance​

Bezos-Backed Firm Signs Deal to Advance Congo Lithium Mine

Bloomberg) -- KoBold Metals Co. has reached a preliminary agreement to move forward with the development of one of the world’s biggest hard rock lithium deposits in the Democratic Republic of Congo.

The firm, backed by billionaires Bill Gates and Jeff Bezos, reached a framework agreement with Australia’s AVZ Minerals Ltd. to buy the latter’s stake in project on the Manono deposit, according to a letter signed by KoBold Chief Executive Officer Kurt House and his AVZ counterpart Nigel Ferguson.

KoBold has proposed a plan that would see AVZ receive compensation, while Zijin continues developing a mine in the northern portion of the Manono deposit, according to another letter addressed to Tshisekedi’s office in January and seen by Bloomberg. Rio Tinto Group has also held talks with Congo and KoBold about investing in the project.

Michael Bloomberg, the majority owner of Bloomberg News’s parent Bloomberg LP, is an investor in Gates’ Breakthrough Energy, which holds a stake in KoBold, according to the company’s website.


09/05/2025

On May 6, 2025, KoBold and Australia’s AVZ Minerals issued a joint statement titled Developing Manono for Peace and Prosperity, signed by their CEOs, Kurt House and Nigel Ferguson.

The companies announced they had agreed on a commercial framework to expedite development of the Manono deposit.

According to the statement, “this framework provides for AVZ to cede its commercial interests in the Manono lithium deposit to KoBold, at fair value,” enabling KoBold to rapidly mobilize over $1 billion to bring Manono’s lithium to Western markets.

KoBold Seeks Lithium Stake in DRC’s Manono Amid Legal Dispute and Geopolitical Shifts - Copperbelt Katanga Mining

KoBold Metals, a U.S.-based mining company backed by prominent investors including Bill Gates and Jeff Bezos, is intensifying efforts to secure rights to the

copperbeltkatangamining.com

KoBold Metals and AVZ Agree on Framework for KoBold to Acquire AVZ’s Interests in the Manono Lithium Deposit in DRC​

Thanks, Secretary of State Marco Rubio, U.S. Senior Advisor for Africa Massad Boulos, and President of the Democratic Republic of the Congo Félix A. Tshisekedi Tshilombo, for opening doors for US investment. KoBold Metals and AVZ Minerals Limited agreed on a framework for KoBold to buy AVZ’s interests in the Manono lithium deposit in the DRC. We’ll make America and the DRC safer, stronger, and more prosperous.

News –

www.koboldmetals.com

It would be a bit hard for KoBold to turn around and say their words can’t be trusted

BTW, I wouldn’t trust a word that comes out of cant see straight

 

[rocknrolla]

Reads as if, kobold getting ducks in a row in country, as a competitive advantage, AVZ negotiating with multi to get best offer. Same as has been for months. There’s an article on linked in mentioning they all expect agreement to be made Oct

 

[Shire]

I think you and Jongo need to go back and re-read. We've reported KoBold to ICSID.

No, we haven’t. Kobold isn’t a party in the arbitration. AVZ are reporting the DRC.

 

[Slipperysucker]

No, we haven’t. Kobold isn’t a party in the arbitration. AVZ are reporting the DRC.

There's a rumour going around that KentCStrait is one of Yaseen's crew, so take whatever it says with a grain of salt