AVZ Discussion 2022

[investinvest]

Refusing to Participate in Arbitration Proceedings • Aceris Law

www.acerislaw.com

As much as I'd like AVZ to FO Jin Cheng's plead for an arbitration, we may not be able to avoid participating in it as it seems that it can still proceed in our absence. Better to be able to make a defence with real evidence rather than let the arbitrators decide based on just dodgy Jin Cheng documents. I'll let AVZ BoD and lawyers and DRC top brass make the best decision.

Introduction to International Arbitration

This Quickguide provides an introduction to international arbitration, its key characteristics and how it works. It concludes with a comparison between arbitration and court litigation.

www.ashurst.com

"Privacy and confidentiality
Arbitration is particularly advantageous for commercial parties because of the privacy and confidentiality that it can offer. Hearings generally take place in private. Parties can agree that the hearing and evidence, and any other material created or disclosed in the proceedings, be kept confidential, and that they (and the arbitrators) will not disclose any information about the arbitration. In comparison, court documents and hearings are generally public."
I wonder if this is why Jin Cheng is begging for arbitration instead of pursuing litigation in DRC, as they get to keep their dodgy documents in private arbitration instead of revealing them in public in DRC and risking being kicked out of their other DRC projects.

"A contracting state may only refuse to enforce an award if:
...
- it would be contrary to public policy to enforce the award."
Hopefully Felix/DRC sticks to their public policy of stamping out corruption in the DRC.

DYOR

 

[Samus]

Finanznachrichten zur Wirtschaft & Börse - ARIVA.DE

Jetzt mit Finanznachrichten schnell und übersichtlich über das Börsengeschehen und die Wirtschaftslage weltweit und insbesondere in Deutschland informieren.

www.ariva.de

AVZ applies to trade break: the Lithium company rejects Jin Cheng Mining's claims

Thursday, 12.05.2022 07:25 by axinocapital.de

The Australian AVZ holds the majority at the world's largest lithium storage site (fixed stone/Congo) through an object company. The expansion is being moved. From an AVZ point of view, however, a clear thing.

AVZ International Pty Ltd. a 100% subsidiary of AVZ Minerals Ltd. (ASX: AVZ, FSE: 3A2has received a request from Jin Cheng Mining for an arbitration procedure before the International Chamber of Commerce in Paris (ICC). In it, the Chinese company is trying to be recognized as a shareholder of Dathcom Mining SA. These claims are rejected by AVZ Minerals.

The background of the dispute is the property rights at Dathcom Mining SA, which belongs to the Manono lithium project in the Congo. Those who are recognized as the Dathcom's legal shareholder therefore hold a share of the project. For AVZ Minerals, this is the 100% subsidiary AVZ International Pty. Ltd.

For this reason, it has also received the request for the proposed introduction of an arbitration procedure before the International Chamber of Commerce in Paris and the changes of writing that it belongs. In his request, Jin Cheng Mining calls for being recognized as a legitimate shareholder of Dathcom Mining.

AVZ Minerals considers the demand unfounded
AVZ Minerals as the parent company now confirms the entry of the application and the entire letter change, but strongly rejects the claims contained in it. In the background is the claim that Jin Cheng Mining has taken over by La Congolaise D'Exploitation Miniere SA (Cominiere) has taken over their 15% share of Dathcom.

AVZ Minerals sees an effort to now initiate an arbitration procedure, another attempt to support the unauthorized claim in the media that one is a legitimate shareholder of Dathcom Mining.

In fact, however, the content is denied with all determination, because if it had actually come to the alleged transfer of shares to Jin Cheng, it is invalid because it undermines the contractually fixed pre-purchase right of AVZ Minerals.

The demands are bullying and unfounded
AVZ Minerals is now examining the request submitted and the change of writing. The AVZ management explains that it wants to take all necessary measures to fight against Jin Chengs „harassment and unfounded demands and to protect the interests of Dathcom and the company.

The procedure before the ICC in Paris is linked to a commitment to confidentiality. This is of course taking note of AVZ Minerals. On the other hand, however, it is also aware of its information obligations to their own shareholders and will therefore continue to inform the market in accordance with all its duties.

For investors investors, this is annoying news, because they indicate that the course of the AVZ mineral share could be subject to strong fluctuations in the coming weeks, although for AVZ Minerals, the legal situation is actually clear and above any doubt due to its contractually fixed pre-purchase rights.

Nice to see one news outlet that gets it.

If you go back now and re-listen and watch the Germany interview on youtube, Nigel doesn't even look phased. Absolute cool cucumber.
You have to wonder what he already knows that the market doesn't....
- Like how the 10mtpa plant scoping study has/is progressing ("expected to be significantly progressed by end of December 2021)
- Lithium Hydroxide facility scoping study

We know this issue has been dragging on for some time, it's only come to a crescendo recently as zijin started making a lot more public noise in this last ditch effort. (perhaps the Twitter twit forced their hand)
It'd have been business as usual for him with this spectre in the background since some time last year.
He's been sound in the knowledge that these attempts from zijin have taken illegal and corrupt back door channels.
The political back story is clearly a mess but everything we've been reading suggests the current government won't bend over and tolerate this sort of behaviour any more.
Hence some unrelated court in France for this latest arbitration attempt imo.
The fact we haven't heard much specific from the DRC yet is uncomfortable but it should be coming and you can't see how they'll possibly spin it to make this behaviour seem acceptable.

 

[Frank]

Frank, I see the Minister is wearing her DUE DILIGENCE dress

Lol, Fyi, She's a busy girl Bro, with a lot on her plate mate, as

Congo mines minister seeks to cancel artisanal cobalt monopoly​

Democratic Republic of Congo Mines Minister Antoinette N’Samba Kalambayi is seeking to cancel a decree granting Entreprise Generale du Cobalt (EGC) a monopoly over artisanal cobalt produced in the country, she told Reuters on Wednesday.

EGC was created to buy, process, and market artisanal cobalt by government decree in December 2019 and officially launched on March 31 last year but has yet to purchase any cobalt ore.

Artisanal miners, who dig cobalt with rudimentary means, are the world’s second-largest source of the metal used in electric vehicle batteries after the Congo’s industrial mines.

A unit of state mining company Gecamines, EGC’s operations has stalled due to infighting between government departments, leadership change at Gecamines, and the challenge of securing access to a viable artisanal site to buy from.

Asked for her view on EGC, Kalambayi said: “I wouldn’t say I am for or against, but one thing is certain: we gave the monopoly to Entreprise Generale du Cobalt (EGC), and that is a violation of the laws of the Republic.”

The mines minister does not seek to dissolve EGC, but merely to cancel the legal monopoly it has, she said, so that all companies can compete to buy artisanal cobalt.

EGC did not immediately respond to an emailed request for comment on the minister’s remarks.

Speaking on the sidelines of the Mining Indaba conference in Cape Town, Kalambayi said the move to cancel the decree would be reviewed by the Congo’s ministerial council and by the prime minister.

Congo mines minister seeks to cancel artisanal cobalt monopoly - Copperbelt Katanga Mining

Democratic Republic of Congo Mines Minister Antoinette N’Samba Kalambayi is seeking to cancel a decree granting Entreprise Generale du Cobalt (EGC)

copperbeltkatangamining.com

GLTA-AVZH's

Cheers

Frank

 

[wombat74]

Here is another worthy post from over there by Helios11 .

People need to stop overthinking. Listen to the company. Read the DRC Mininig Code. Understand the requirements of the mining code for the DRC Mines Minister to sign the Decree. If you understand these three points, and not even think about the contract stuff. You will see its all fine.

Nigel was clear. 75% during his most recent interview.
AVZ has been clear, the have 75%, they have legal titles.
DRC minister has signed Decree for 75% (Good Title).

Zinjin rushed in, thought they had buy of the century and have realized they have lost. Disinformation campaign at its best.

The rules and precedents are quite clear. The contract as pointed out provided AVZ FROR. Furthermore, as combaste pointed out, elements in the contract restrict the pledging of shares until financing has been declared in reference to the feasibility study. This same feasibility study, and financial ability were put before Mines Minister to sign the Decree. All above board and legal.

I pointed out last night some time, a few requirements under the DRC mining code to move beyond Exploration to Exploitation. Simpy put, a company must have and remain with 51% or greater of shares in the controlling company. Again, simple. Anyone, any company (Zinjin), and media outlet, (AFR), writing and releasing uninformed information could be subject to legal action for not doing thier own DD.

DRC must remain with 10% shareholding as part of the DRC Mining Code. No other situation allows anyone other than AVZ to retain 51% of Dathcom, to mine Manano.

 

[Samus]

Refusing to Participate in Arbitration Proceedings • Aceris Law

www.acerislaw.com

As much as I'd like AVZ to FO Jin Cheng's plead for an arbitration, we may not be able to avoid participating in it as it seems that it can still proceed in our absence. Better to be able to make a defence with real evidence rather than let the arbitrators decide based on just dodgy Jin Cheng documents. I'll let AVZ BoD and lawyers and DRC top brass make the best decision.

Introduction to International Arbitration

This Quickguide provides an introduction to international arbitration, its key characteristics and how it works. It concludes with a comparison between arbitration and court litigation.

www.ashurst.com

"Privacy and confidentiality
Arbitration is particularly advantageous for commercial parties because of the privacy and confidentiality that it can offer. Hearings generally take place in private. Parties can agree that the hearing and evidence, and any other material created or disclosed in the proceedings, be kept confidential, and that they (and the arbitrators) will not disclose any information about the arbitration. In comparison, court documents and hearings are generally public."
I wonder if this is why Jin Cheng is begging for arbitration instead of pursuing litigation in DRC, as they get to keep their dodgy documents in private arbitration instead of revealing them in public in DRC and risking being kicked out of their other DRC projects.

"A contracting state may only refuse to enforce an award if:
...
- it would be contrary to public policy to enforce the award."
Hopefully Felix/DRC sticks to their public policy of stamping out corruption in the DRC.

DYOR

Interesting this first sentence:

Parties who signed a binding arbitration agreement are, in principle, bound by its terms.

In what manner might AVZ have signed a binding arbitration agreement?

This legal stuff is way over my head for the most part.

 

[Manook]

Agree with this

The Chinese are ruthless, it's better to undergo it now while Felix is still in power. Can you imagine going through this if he doesn't win the election again?

For me, AVZ doesn't have the cash, time or experience to take the fight to zijin. We really need DRC investigation to rule in our favour.

Can you imagine a big mining company facing these claims and taking it laying down? We unfortunately have to imo. They'd probably send all the lawyers and take the other party to court.

When this is all done and dusted and if we come through with the absolute ownership, for me the next risk hurdle is the 2023 elections.

I wonder how much the Chinese will influence it....

Redirect Notice

 

[Samus]

Interesting this first sentence:

Parties who signed a binding arbitration agreement are, in principle, bound by its terms.

In what manner might AVZ have signed a binding arbitration agreement?

This legal stuff is way over my head for the most part.

Also sounds like zijin would have to hand over all of their evidence/documentation to AVZ for review :

The arbitrator also needs to ensure that the other party has been given a fair opportunity to present its case and, if it decides, to start participating at any given moment. In practice, ensuring that the other party has received all notifications, documents and correspondence related to the case can easily be proven from “read” and “delivery” receipts for every email exchanged, and by providing hard copies of all documents and correspondence on the record, together with proof of delivery. In a nutshell, ensuring that the other party has been duly and timely notified about each and every step of the arbitration proceedings and has received every single document submitted on the record is important in order not to face challenges at the enforcement stage.

That can't be ideal for zijin or for the DRC from what we know. Got to wonder if this is just more intimidation tactics to try to force a favourable outcome.

 

[Sammy_da_Smile]

Also sounds like zijin would have to hand over all of their evidence/documentation to AVZ for review :

The arbitrator also needs to ensure that the other party has been given a fair opportunity to present its case and, if it decides, to start participating at any given moment. In practice, ensuring that the other party has received all notifications, documents and correspondence related to the case can easily be proven from “read” and “delivery” receipts for every email exchanged, and by providing hard copies of all documents and correspondence on the record, together with proof of delivery. In a nutshell, ensuring that the other party has been duly and timely notified about each and every step of the arbitration proceedings and has received every single document submitted on the record is important in order not to face challenges at the enforcement stage.

That can't be ideal for zijin or for the DRC from what we know. Got to wonder if this is just more intimidation tactics to try to force a favourable outcome.

I doubt that a multi billion dollar company such a zijin would engage if they didn't think they would win? Just have to wait and see, it seems both Co's think they are correct for the moment?

 

[Samus]

I doubt that a multi billion dollar company such a zijin would engage if they didn't think they would win? Just have to wait and see, it seems both Co's think they are correct for the moment?

Who knows, perhaps they're just trying their luck. Best case they get a slice of Manono, worst case they write off some legal expenses.

 

[Sammy_da_Smile]

Who knows, perhaps they're just trying their luck. Best case they get a slice of Manono, worst case they write off some legal expenses.

Yeh very true, risk vs reward for sure!

 

[DiscoDanNZ]

Each party will have their own interpretation of contracts and events, each party will have information the other one doesn't and each party will think they are in the right until it is all laid out in front of us it's impossible to know whats going on.

AVZ thinks they are in the right enough to basically tell Zijin to f off and Zijin thinks they are in the right enough to take it to court.

My biggest concern is that we have pretty much had zero out of the DRC in relation to a ruling or an official government backed opinion on the matter.

My hope is that we are in the right and don't lose it over something as simple as someone not replying to an email lol.

 

[investinvest]

Cominiere is set up for the benefit of the DRC and is only holding a share in Dathcom on behalf of DRC. So no way that the Dathcom agreement allows Cominiere to sell their stake before precedent conditions (DFS, financing) allow ceding of the 10% to DRC. It's like a chef (Cominiere) letting the Chinese visitor (Z / JC) eat the boss's (DRC) big juicy steak pie (Manono) before dinnertime even starts (ML award, finance from CATH). If I'm the boss, I'd fire the chef for sure and kick the visitor out of the house.

DYOR

 

[Winenut]

Here is another worthy post from over there by Helios11 .

People need to stop overthinking. Listen to the company. Read the DRC Mininig Code. Understand the requirements of the mining code for the DRC Mines Minister to sign the Decree. If you understand these three points, and not even think about the contract stuff. You will see its all fine.

Nigel was clear. 75% during his most recent interview.
AVZ has been clear, the have 75%, they have legal titles.
DRC minister has signed Decree for 75% (Good Title).

Zinjin rushed in, thought they had buy of the century and have realized they have lost. Disinformation campaign at its best.

The rules and precedents are quite clear. The contract as pointed out provided AVZ FROR. Furthermore, as combaste pointed out, elements in the contract restrict the pledging of shares until financing has been declared in reference to the feasibility study. This same feasibility study, and financial ability were put before Mines Minister to sign the Decree. All above board and legal.

I pointed out last night some time, a few requirements under the DRC mining code to move beyond Exploration to Exploitation. Simpy put, a company must have and remain with 51% or greater of shares in the controlling company. Again, simple. Anyone, any company (Zinjin), and media outlet, (AFR), writing and releasing uninformed information could be subject to legal action for not doing thier own DD.

DRC must remain with 10% shareholding as part of the DRC Mining Code. No other situation allows anyone other than AVZ to retain 51% of Dathcom, to mine Manano.

Helios11 has been posting some good stuff and putting up some good arguments and fact

Fighting a one man rear guard action against the troll swarms over in crapsville

 

[wombat74]

Cominiere is set up for the benefit of the DRC and is only holding a share in Dathcom on behalf of DRC. So no way that the Dathcom agreement allows Cominiere to sell their stake before precedent conditions (DFS, financing) allow ceding of the 10% to DRC. It's like a chef (Cominiere) letting the Chinese visitor (Z / JC) eat the boss's (DRC) big juicy steak pie (Manono) before dinnertime even starts (ML award, finance from CATH). If I'm the boss, I'd fire the chef for sure and kick the visitor out of the house.

DYOR

I'd be throwing the bastards in Jail . That money is for the DRC government not for snacks and hookers . Off with their heads .

 

[Xerof]

I've actually had a read of the 'Shareholder Agreement' that Tendoji posted on the toilet a few days ago, dated 2019, so appears to be an updated version of how things were to work going forward from then. The split in that document is 60/25/15, whereas, in 2016/17 when the deal was consummated it was clearly 60/30/10.

Once again, I surmise, as I don't know the truth, but it would seem that Cong got in between COMINIERE and AVZI for the extra 5%, and probably took a cut for arranging it? So, from there, the 2 deals for options were all with DATHOMIR

Semi explains the discrepancy someone pointed out last night or this morning.

 

[investinvest]

I've actually had a read of the 'Shareholder Agreement' that Tendoji posted on the toilet a few days ago, dated 2019, so appears to be an updated version of how things were to work going forward from then. The split in that document is 60/25/15, whereas, in 2016/17 when the deal was consummated it was clearly 60/30/10.

Once again, I surmise, as I don't know the truth, but it would seem that Cong got in between COMINIERE and AVZI for the extra 5%, and probably took a cut for arranging it? So, from there, the 2 deals for options were all with DATHOMIR

Semi explains the discrepancy someone pointed out last night or this morning.

Or maybe Dathomir bought 5% from Cominiere to end up with Dathomir 15% and Cominiere 25% sometime during those years and AVZ didn't announce it as it does not relate to/affect AVZ?

 

[investinvest]

Wishful thinking/daydreaming:
Would be nice if in the midst of the recent general market bloodbath were a group of instos/retail selling their non-AVZ lithium stocks to raise cash to buy AVZ as soon as trading starts again. That would precipitate a short squeeze for sure.

We longs should probably concentrate on posting our collective objective research and discussion on HC too on Thursday 19 May so that new holders/retail can make better decisions just before the market open and avoid being influenced by the FUD spread by the Z and JC misinformation campaign. Hold the line before the battle starts at dawn.

 

[wombat74]

I've actually had a read of the 'Shareholder Agreement' that Tendoji posted on the toilet a few days ago, dated 2019, so appears to be an updated version of how things were to work going forward from then. The split in that document is 60/25/15, whereas, in 2016/17 when the deal was consummated it was clearly 60/30/10.

Once again, I surmise, as I don't know the truth, but it would seem that Cong got in between COMINIERE and AVZI for the extra 5%, and probably took a cut for arranging it? So, from there, the 2 deals for options were all with DATHOMIR

Semi explains the discrepancy someone pointed out last night or this morning.

It's getting weird . So was Nigel unaware of the 60/30/10 done in 2016/17 ? Was the Minister for Mines unaware . Hell was the whole fricking
DRC government unaware . Zijin and it's gangsters had this big secret they decided to share with us on the eve of the ML .

 

[TDITD]

We end up with 66% or 61%. Would be nice to have it cleared when we out of suspension along with CATHs $$, BFS, Drilling results, 10mtpa SS (if BFS hasn’t been adjusted for 10mtpa), updated presentation to show our path to 10mtpa.

Edit
Also then we can get some Zijin in the bin T’s

 

[Xerof]

Or maybe Dathomir bought 5% from Cominiere to end up with Dathomir 15% and Cominiere 25% sometime during those years and AVZ didn't announce it as it does not relate to/affect AVZ?

Yep, thats what I am trying to say. Not inferring AVZ asked him to do it, but hmmm, can't rule that out either LOL