Lithium DRC: DATHCOM/AVZ Minerals in court (CCI) against COMINIERE for their rights to the sale of the 15% to ZIJIN
April 17, 2023
Kiki Kienge
By Kiki Kienge
It should be specified above all that it is not for the moment the Congolese State which is brought before Justice by DATHCOM and AVZ Minerals, but the COMINIERE company and its management. In particular that it still has nothing to do with the withdrawal of DATHCOM's operating permit by the DR Congo's ministry of mines, on which Minister Antoinette Kalabayi based her decision-making.
As a reminder, COMINIERE had sold 15% of its shares to the Chinese group, ZIJIN at 33.4400.000 $US, when the real value was 150 million $US according to the report of the Presidency of the Congolese Republic through the General Inspectorate of Finance (IGF).
COMINIERE through its interim Managing Director, Célestin Kibeya claims that his company had informed AVZ Minerals, which owns the pre-emptive rights, by letter and that the latter would have offered only US$15 million for the 15%. But AVZ in a document, demonstrates a subsequent proposal of more or less US$150 million and COMINIERE's participation in the international stock market.
In particular, COMINIERE sold, defying any joint venture agreement, three DATHCOM mining permits, a company under Chinese rights and one of its subsidiaries in the DR Congo, including the current Minister of State, Minister of Territorial Development, Guy Loando Mboyo holds 10% of the shares:
- The PE (Exploitation Permit) 12436 that COMINIERE SA transferred on
07/12/2017 to DATHCOM Mining for exploitation was transferred by the
latter on 07/12/2018 to HONGKONG YISEN which, in turn, transferred it on
05/17/2019 at HONGKONG EXCELLEN MINING INVESTMENT
CONGO SARL.
- PE 12449 that COMINIERE SA sold on 07/12/2017 to DATHCOM
Mining SA was sold on 07/12/2018 by the latter to HONGKONG
YISEN.
- PE 12450 that COMINIERE SA sold on 07/06/2017 to DATHCOM
Mining SA was sold by the latter to HONGKONG EXCELLEN
MINING INVESTMENT CONGO SARL.
Read the link on this file at the end of the article.
It should be noted that this is even more likely to delay the start of lithium exploitation in Manono, for which the population of Tanganyika is impatiently waiting for the relaunch of their development.
To the government of the DR Congo and if not the direct involvement of the Head of State, Félix Tshisekedi in this file to resolve this situation, the first victim of which will only be the Congolese population in general and that of Tanganyika in particular.
MINERALS LIMITED PRESS RELEASE
Continuation of the legal action to affirm the interests in the Manono project Start of the Cominière arbitration procedure.
AVZ Minerals Limited (ASX: AVZ, OTC: AZZVF) (AVZ or the Company) announces that the Company, through its subsidiaries, and Dathcom Mining SA (Dathcom) have formally commenced arbitration proceedings before the International Court of Arbitration of the International Chamber of Commerce (“ICC”) against La Société Congolaise d'Exploitation Miniere d'Exploitation Miniere (RCCM 14-B-5938) (Cominière) (Cominière Arbitration Proceedings).
The primary purpose of Cominière's arbitration proceedings is to seek various remedies for instances of Cominière's breach of its obligations under the joint venture dated January 27, 2017, as amended from time to time (Dathcom JVA) including statements purporting to confirm Cominière's purported termination of the Dathcom JVA and its purported transfer of part of its interest in Dathcom in violation of the Dathcom JVA, are all null and void.
Cominiere attempted to terminate the Dathcom joint venture without cause and in a manner contrary to its express terms. The Company considers that the conduct of Cominiere is illegal and the Company, in collaboration with Dathcom, will take all necessary measures for the necessary actions to protect the interests of its stakeholders, in particular the people of the Democratic Republic of Congo (DRC). ).
Cominière holds 25% of the share capital of Dathcom. AVZ confirms that it retains legal title to a 75% interest in the Manono project and pre-emption rights greater than 15% on Cominière's 25% interest in the project (noting that Cominière must sell the 10% balances of its 25% interest in the Project to the Government of the DRC as a condition of the award of the mining license). The shareholders of Dathcom (namely Cominière and AVZ, through a subsidiary) are parties to the Dathcom joint venture, and as such, benefit from a preferential right on the proposed sale of shares in Dathcom to third parties. Under the laws of the DRC, a transfer of shares made in violation of such a right of first refusal is null and void.
