“AVZ's opponents have adopted a strategy of delaying negotiations in the hope that AVZ will run out of funds”
NEWSECONOMY
After the +/-100,000,000 US$ already spent, AVZ releases 20,000,000 US$ for the management of the Manono lithium dispute
November 18, 2023
Kiki Kienge
By
Kiki Kienge
This announcement is a hard blow for all those who thought that the Perth group was at the end of its financial resources, but with this financing AVZ reassures itself and reassures itself of reaching the end of the dispute with all the necessary means at its disposal .
Note one very important thing;
“AVZ's preferred path is that of a negotiated resolution beginning with the execution of a memorandum of understanding with the DRC government which provides for the suspension of the ICSID proceeding while the DRC government takes action necessary to comply with the Mining Code,” the Australian group said.
Accused by COMINIERE, its partner in DATHCOM SA, of not having sufficient financial possibilities to carry out the exploitation of the Manono lithium deposit, the Perth group has just gone full throttle to demonstrate the opposite, notably cut short the bad tongues who work against the Australian group, the Manono project, working for their own interests to the detriment of the Congolese people.
The General Director of COMINIERE,
Célestin Kibeya in an interview on TV channel 50, was deadpan after attacking
Marius Mihigo , clearly declared to be almost promoting the Chinese group;
“Put AVZ and ZIJIN on a scale, AVZ is a junior. ZIJIN has 40% in the major Kamoa project, ZIJIN has 72% with Gécamines, ZIJIN owns a cement factory, ZIJIN is among the top 400 fortunes in the world. »
But Célestin Kibeya, forgetting that the Chinese group ZIJIN was already present in the Democratic Republic of Congo for many years well before the Australians of AVZ MINERALS, owning numerous cobalt and copper mines. But the testimonies of Congolese workers in ZIJIN companies, the impact of ZIJIN investments on Congolese society, are only very negative.
As a reminder, the ZIJIN group has notably owned two lithium permits with the same COMINIERE for several years, in the KATAMBA MINING joint venture, of which ZIJIN owns 70% and 30% for COMINIERE, but strangely has never even invested a cent for feasibility studies or other work on the sites of the two lithium permits.
So, invigorated by its victory at the Paris Arbitration Court, which blocks any exploitation or manipulation on PR13359 (PR15775), AVZ MINERALS has just signed a condition sheet of US$20,000,000, for the financing of funds for strategies to thaw the disputes in DR Congo on the Manono lithium project.
“AVZ is very pleased to have signed this Term Sheet with Locke, an international litigation funder with extensive experience in financing complex legal proceedings such as those pursued by AVZ.
Having Locke provide this proposal after completing a round of diligence validates AVZ's strong position in all of its legal disputes, with clear funding toward a conclusion in AVZ's favor.
AVZ remains committed to defending its legal rights in the interest of its shareholders and stakeholders in the DRC and to bringing the Manono project through to production.” Said
Nigel Ferguson , Managing Director of AVZ.
Important passages from the AVZ MINERALS press release :
AVZ has signed a binding term sheet (term sheet) to pave the way for the execution of a formal agreement for general working capital and litigation funding, up to USD 20,000,000 (Financing facility).
Following the due diligence carried out by Locke, and subject to the approval of its Investment Committee and the negotiation and execution of final documentation, Locke will advance funds to AVZ which will be deployed in the framework of the Manono project.
The funds will be used to finance all legal costs incurred by AVZ on behalf of AVZ International Pty Ltd, Green Lithium Holdings Pte. Ltd or Dathcom, expert fees, local legal assistance, investigation costs, arbitration and court costs and any related activities.
The Financing Facility is intended to fully finance legal costs incurred in connection with the three ICC arbitration proceedings involving La Congolaise d'Exploitation Minière and/or Jin Cheng Mining Company, the two ICC arbitration proceedings involving La Congolaise d'Exploitation Minière and/or Jin Cheng Mining Company, the two ICC arbitration proceedings involving Dathomir Mining Resources SARLU, and the ICSID arbitration proceedings against the Democratic Republic of Congo, as previously reported to the ASX.
Funds may also be used for other procedures as agreed.
Additionally, the term sheet highlights the intention of the financing facility to cover all legal fees associated with the Manono project, corporate costs and all project costs associated with maintaining the current status of the project Manono, if society needs it.
The company remains committed to progressing the development of the Manono project, for the benefit of all AVZ stakeholders, and believes that the data sheet constitutes an important step towards reaching a firm agreement.
AVZ's preference remains to resolve the various disputes by agreement.
However, AVZ's opponents adopted a strategy of delaying negotiations in the hope that AVZ would run out of funds and be unable to protect its rights.
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