AVZ Discussion 2022
- Thread starter GazDix
- Start date
CashKing
Regular
Imagine putting up with all this for 5 years and not getting paidTough gig being an avz shareholder, if there's balance in the world the pay off should be enormous
I’ll catch up with you all in the mental ward at lunch time when we are allowed out of our straight jackets 
…GLTAH
Mr Inappropriate
Regular
Maybe…
The preconditions for CATH’s investment (being the ML) was waived so my understanding is that the $240m should have been paid already. AVZ reps told me it expected the funds to be paid in April. So might it be the case the CATH are already in breach and owe us a $20m break fee?
investinvest
Regular
Reviewing sydneyguy's stellar post again: https://hotcrapper.com.au/threads/running-discussion-on-sp.4111732/page-70754?post_id=61271347
As you all know by now I am long AVZ so don't shoot me for asking this honest question as I can't find the answer (though I hope HC trollers don't find this post and create FUD with it):
I can see that AVZ executed the 5% of Dathcom from Dathomir on 24 June 2019. Extraordinary General Meeting (EGM) specifically mentioned as required to approve the sale. Following this, on 1 October 2019, AVZ announced that the EGM was convened and sale of the 5% to AVZ was approved. Cool, 65% definitely in the bag. No question about it.
Then AVZ on 21 Sept 2020 announced executing the option to purchase 10% of Dathcom from Dathomir. Again, EGM mentioned as a requirement to approve the sale. However, I have not been able to find another mention/announcement of this second EGM as happened for the initial 5% purchase. So my question: does anyone know for sure that this second EGM has been convened to approved the 10% sale from Dathomir? I know that the balance of the two payments have been made to Dathomir for the full 15% share, but might this EGM requirement be Dathomir's way of throwing mud on our project share?
Found what I believe to be the surface rights fees for DRC from my research tonight:
Page 56 of https://www.cabemery.org/wp-content/uploads/The_Mining_Law_Review_DRC_Chapter.pdf
Fees current as of November 2012 (so might be a little out-dated):
"For holders of PEs, the fees are in Congolese francs, equivalent to US$0.04 per hectare for the first year, US$0.06 per hectare for the second year, US$0.07 per hectare for the third year and US$0.08 per hectare for subsequent years."
Above figures also corroborated with this source: https://www.hg.org/legal-articles/m...in-the-democratic-republic-of-the-congo-20622
So, Manono project is 188 square kilometres i.e. 18,800 hectares (1 square kilometre = 100 hectares). So 18,800 x US$0.04 = US$752.00 for the first year. Not an alarming figure at all.
I am aware that there is a more recent source (November 2021): https://thelawreviews.co.uk/title/the-mining-law-review/democratic-republic-of-the-congo-mining-law
In this source: "Any holder of a research or exploitation permit is subject to a surface right at the rate of US$5.89 per quadrangle."
Your guess is as good as mine as to what unit of measurement a quadrangle is but assuming that it is a square kilometre, it conveniently equates to US$0.0589 per hectare (which is a slight increase from the aforementioned Nov 2012 sources). Using this assumption, the surface rights fee for the first year should be US$1,107.32.
Anyway DYOR.
Oh, and here's the DRC's official mining code from 2018: https://eiti.org/sites/default/files/attachments/j_o_ndeg_speicial_du_28_mars_2018_code_minier.pdf
Also, a scenario that I have been pondering (along with my investor mate). What if, it was actually Nigel who is delaying the CATH transaction from closing because he is aware of all these extra fingers in the pie and does not want to give away the 24% too early without concrete and public support from the DRC about the Zijin/Jin Cheng invaders? Because right now, I am feeling relieved that Nigel has not sold the 24% because that is the thing that allows us alternative backup options in case the Chinese play dirty and DRC don't want to stamp their illegal deals out hard. Is it a case of CATH been raring to send us the cash after removing ML as a condition but NF telling CATH that he won't accept it until this is sorted? Because I don't know what other reasons CATH has for removing ML as a condition but yet still don't want to transfer the money. If If CATH was doing China's bidding, they would rush to complete the transaction immediately before this Zijin/Jin Cheng issue comes to the surface because that would weaken AVZ's position when dealing with this issue. Anyway, I am very glad that the CATH deal has not been closed yet because project share is king in this situation. Now Jin Cheng is begging us to talk with them.
Anyway just my 2c. DYOR. Bedtime for me
As you all know by now I am long AVZ so don't shoot me for asking this honest question as I can't find the answer (though I hope HC trollers don't find this post and create FUD with it):
I can see that AVZ executed the 5% of Dathcom from Dathomir on 24 June 2019. Extraordinary General Meeting (EGM) specifically mentioned as required to approve the sale. Following this, on 1 October 2019, AVZ announced that the EGM was convened and sale of the 5% to AVZ was approved. Cool, 65% definitely in the bag. No question about it.
Then AVZ on 21 Sept 2020 announced executing the option to purchase 10% of Dathcom from Dathomir. Again, EGM mentioned as a requirement to approve the sale. However, I have not been able to find another mention/announcement of this second EGM as happened for the initial 5% purchase. So my question: does anyone know for sure that this second EGM has been convened to approved the 10% sale from Dathomir? I know that the balance of the two payments have been made to Dathomir for the full 15% share, but might this EGM requirement be Dathomir's way of throwing mud on our project share?
Found what I believe to be the surface rights fees for DRC from my research tonight:
Page 56 of https://www.cabemery.org/wp-content/uploads/The_Mining_Law_Review_DRC_Chapter.pdf
Fees current as of November 2012 (so might be a little out-dated):
"For holders of PEs, the fees are in Congolese francs, equivalent to US$0.04 per hectare for the first year, US$0.06 per hectare for the second year, US$0.07 per hectare for the third year and US$0.08 per hectare for subsequent years."
Above figures also corroborated with this source: https://www.hg.org/legal-articles/m...in-the-democratic-republic-of-the-congo-20622
So, Manono project is 188 square kilometres i.e. 18,800 hectares (1 square kilometre = 100 hectares). So 18,800 x US$0.04 = US$752.00 for the first year. Not an alarming figure at all.
I am aware that there is a more recent source (November 2021): https://thelawreviews.co.uk/title/the-mining-law-review/democratic-republic-of-the-congo-mining-law
In this source: "Any holder of a research or exploitation permit is subject to a surface right at the rate of US$5.89 per quadrangle."
Your guess is as good as mine as to what unit of measurement a quadrangle is but assuming that it is a square kilometre, it conveniently equates to US$0.0589 per hectare (which is a slight increase from the aforementioned Nov 2012 sources). Using this assumption, the surface rights fee for the first year should be US$1,107.32.
Anyway DYOR.
Oh, and here's the DRC's official mining code from 2018: https://eiti.org/sites/default/files/attachments/j_o_ndeg_speicial_du_28_mars_2018_code_minier.pdf
Also, a scenario that I have been pondering (along with my investor mate). What if, it was actually Nigel who is delaying the CATH transaction from closing because he is aware of all these extra fingers in the pie and does not want to give away the 24% too early without concrete and public support from the DRC about the Zijin/Jin Cheng invaders? Because right now, I am feeling relieved that Nigel has not sold the 24% because that is the thing that allows us alternative backup options in case the Chinese play dirty and DRC don't want to stamp their illegal deals out hard. Is it a case of CATH been raring to send us the cash after removing ML as a condition but NF telling CATH that he won't accept it until this is sorted? Because I don't know what other reasons CATH has for removing ML as a condition but yet still don't want to transfer the money. If If CATH was doing China's bidding, they would rush to complete the transaction immediately before this Zijin/Jin Cheng issue comes to the surface because that would weaken AVZ's position when dealing with this issue. Anyway, I am very glad that the CATH deal has not been closed yet because project share is king in this situation. Now Jin Cheng is begging us to talk with them.
Anyway just my 2c. DYOR. Bedtime for me
Sorry to hear you are seriously sick.
I hope you get better soon.
At least you are in hospital.
Xerof
Biding my Time 1971
If you're on the Bird, or just Visiting from time to time like me, say Hello to our Bro Joe
Frank, I see the Minister is wearing her DUE DILIGENCE dress
Xerof
Biding my Time 1971
To answer your honest question, I too have had a look and nowhere is it stated there was an EGM of DATHOMIR to approve the agreement. I can see it was settled, just after the 40m CR in mid 2021. This appears to coincide with the 'rumblings' of discontent coming out of the DRC (remember those strange documents posted on the crapper at that time?) So maybe they just exercised the option and paid it all to get the 15% into our name. An EGM was the only condition required to approve the issue of the 10% option. Having said that, it doesn't necessarily mean the EGM didn't occur, it just may have not made it to an announcement prior to settling.
Your scenario of AVZ holding back is solid and one I agree is highly likely. If not for some time, then I hope like hell it is right now. Again, the indecent rush to waive all the conditions precedent by CATH, pricked my ears up at the time, and then not settling seemed a bit odd. NF was economical with reasons for delay, i.e. none given
More happening than we know about for sure
So on this 10%. It’s not really AVZ’s job to check if another company has had a meeting. Im sure after the money was paid AVZ received the documentation pertaining to the transfer of rights of the 10%. If something as simple as this was overlooked I’d expect half the board to resign to be honest but I don’t think AVZ have been sitting there saying ‘did you check the mail today to see if the docs were delivered for the 10%?’
As for CATH someone else noted it was a chicken and egg scenario. We needed a guarantee that CATH were executing and they were not executing until ML but DRC were saying well we need to see the money is coming in first. So I dare say CATH waiving conditions helped in meeting that criteria but behind closed doors they are saying let’s just wait for the ML to drop….
All IMO and I have NFI at the end of the day.
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DiscoDanNZ
Regular
Ahhh these pricks on HC just don’t give up, WTF is wrong with them, I’ve had a quick look at Twitter not much better, I can only think they are worried if AVZ succeeds !
Why else would they go to this effort ?
I think I’ll refrain from looking or posting like most reputable posters have done by the looks, I think they have left, leave the trolls to turn on themselves
Do yourself a favour and get suspended, can't recommend it enough for sanity's sake.
Yeah I bought the scenario that it's actually us holding up the CATH deal the other day and TBH in light of the happenings in the last week it actually makes more sense than CATH being the ones holding it up.
I remember the waiver being announced and then a week later wondering where the announcement was that it was completed and wondering what was going on as it seemed strange that they would waive then not pay.
Let’s just get the paperwork for the 5% and 10% approved and acknowledged by DRC before that. It’s more then likely a non event but it’s nice to be sure
BRICK
Regular
BRICK
Regular
TWEEE WALLABY!When your doctor isn't giving you a timeframe of when you can go home just picture Nigel saying imminent and you'll feel a lot better. Plus then it also doesn't matter how long it will actually be because its imminent regardless. Imminent > actual timeframes.
Lets be honest you and Tree Wallaby can try as hard as you want to read the tea leaves but you've got nothing on Twot Investors cooked chart analysis
BRICK
Regular
If i cant touch it or dig it out of the ground, im not interested lol.
BRICK
Regular
Good view! In Melbourne you might get a park bench somewhere out in the suburbs for that price.. If anyone has a plan of a property they are looking at they want reviewed let me know!View attachment 6405
We were talking about 1 bedroom apartments champ.........
Craigie getting $600k ?
No better than Armadale, shit hole, state housing .........tell them they are dreaming.!!
lol
So if true Nigel has had this going around in his head the whole time . The dude must be a mental wreck . Could he have made such a fundamental blunder ? Money was paid .
investinvest
Regular
Well I would like it if someone with connections to the BoD to check with them about whether another Dathcom EGM was convened after 21 Sept 2020 for the remaining 10% and was just simply not announced on the ASX. But Dathomir definitely have no claim on the first 5% so anything that claims that Dathomir still owns 15% of Dathcom is false (like Zijin's website post). Only 10% requires concrete confirmation as above.
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