AVZ Discussion 2022

[Hodlandwin69]

Didn't we want 20mil initially, why the reduction?? Worth a question at the AGM.

Also still makes me wonder if AVZ actually ran out of money and couldn't pay icsid until locke came through. Idk, guess we'll ask nige

 

[BEISHA]

Looks like tomorrow is going to be a "hoot" Nige and the team dropping $15M USD the night before Christmas?? I heard it's been directly wired straight to the Herdsman Tav for the biggest tab of the year... Some would even say it's yugeeee

 

[Yaseen]

Without locke funding we would of been fucked, so you should be excited cause AVZ are funded to the end of this mess and it sends a powerful message to the evil cunts that maybe its time to do a deal, which is why Locke are leveraged with shares accordingly.......imo

far from excited sorry Beish, its like getting raped 1000 times with a pineapple then someone telling me I should be excited because this time im only getting raped with a kiwi fruit, psychological warfare and stockholm syndrome sound familiar here

 

[BEISHA]

far from excited sorry Beish, its like getting raped 1000 times with a pineapple then someone telling me I should be excited because this time im only getting raped with a kiwi fruit, psychological warfare and stockholm syndrome sound familiar here

well, its your perogative to feel that way i guess, as for me, hope springs eternal, leave it at that

 

[Yaseen]

Didn't we want 20mil initially, why the reduction?? Worth a question at the AGM.

Also still makes me wonder if AVZ actually ran out of money and couldn't pay icsid until locke came through. Idk, guess we'll ask nige

would appear so considering were drawing on the money almost immediately, the silence from board is usually a telling sign, time will tell. I gotta give it to management on how good they are at dodging bullets at AGM's, mad skills

And Beish yes Im hopeful too, and as critical as I have been of management over the last coupla years I have no answers on how it could be done better. Im just calling it how I see it, its not an emotional investment for me as it is here for many others, for me I put money in and I want money out, that is all, and anything aside from that is kaka in the wind

 

[BEISHA]

would appear so considering were drawing on the money almost immediately, the silence from board is usually a telling sign, time will tell. I gotta give it to management on how good they are at dodging bullets at AGM's, mad skills

 

[Flexi]

Didn't we want 20mil initially, why the reduction?? Worth a question at the AGM.

Also still makes me wonder if AVZ actually ran out of money and couldn't pay icsid until locke came through. Idk, guess we'll ask nige

US $15 mill = AU $20 mill

 

[Roon]

Excellent news that we have litigation funding.

However it's a bit concerning that there is longstop payment date being the end of 2026, with Locke holding security over all of AVZ and it's subsidiaries assets. Would that include our title over 13359, or would that be separate due to it being attributed to Dathcom? Because if we do have to go through full ICSID, and get an award, the chances we'll actually have money in our account to pay back this fund by that point is pretty minimal. Though perhaps we could get a secondary loan against the award to pay back this first one. Be cutting it pretty tight though.

Anyway, so here's hoping the pure fact that we are funded is enough to get DRC and our other opponents to come to the table and make a fair deal. That management accepted this longstop date would suggest they are confident that we'll get a deal rather than needing to go through the full ICSID process, one would think.

 

[Yaseen]

View attachment 73499

 

[Yaseen]

US $15 mill = AU $20 mill

Actually over $23m AUD right now, so no complaints on that one as long as it covers the court cases etc

 

[Hodlandwin69]

US $15 mill = AU $20 mill

Sure ok, but the original plan was for US $20 mil brah.
You could see it as a good sign that AVZ might only need up to $15 mil, but why not have it up to $20 mil and only draw what's needed anyway.

I'm all for having the funds to keep us alive for another 2 years, but just stating the facts

 

[JNRB]

Sure ok, but the original plan was for US $20 mil brah.
You could see it as a good sign that AVZ might only need up to $15 mil, but why not have it up to $20 mil and only draw what's needed anyway.

I'm all for having the funds to keep us alive for another 2 years, but just stating the facts

Because if "oh just made it $20 mil" then Lock would "oh just want some more sweeteners".
This isn't a bank loan....

 

[JNRB]

Ok so 2 ways to deal with this announcement: left-brain right-brain.

Left brain
lets do the accounting and come up with some equation to determine if it's a good deal based on purely hypothetical assumptions on how this will play out and what the result will be.

Fk that, will deal with the numbers later. For now...

...Right brain:

SUCK IT ZIJIN YOU DESPICABLE #@%HOLES!!
YOU DOGS AREN'T TOUCHING THIS
WE'LL MORTAGE OR OPTION OUT AS MUCH AS WE NEED TO MAKE SURE YOU DON'T GET A SINGLE SQUARE!

 

[j.l]

Sure ok, but the original plan was for US $20 mil brah.
You could see it as a good sign that AVZ might only need up to $15 mil, but why not have it up to $20 mil and only draw what's needed anyway.

I'm all for having the funds to keep us alive for another 2 years, but just stating the facts

I believe the Locke funding only covers legal costs. Corporate costs are excluded, which is possibly why there's a shortfall against the originally targeted sum.

AVZ still has to find a way to fund corporate costs, hence the recent convertible note raising (and presumably it was needed to be able to demonstrate to Locke that AVZ was still a going concern).

December 2026 is not that far away, especially in light of the timelines of other ICSID proceedings that we've heard about recently.

Hopefully management learn a lesson from all these last minute funding adventures and is already planning the strategy for the next round of funding come the end of the Locke deal. Or some of that temporary relief is paid out.

The stakes remain very high. One can only hope...

 

[Bray]

Genuine question and may have missed the answer - with Locke’s funding, what would happen if AVZ failed with the court cases and Locke has paid for it all and AVZ is out of cash to pay em back

 

[Schnitzelfresser]

Even if it is not the buy-out that some had hoped for, the financing from Locke clearly shows how strong our legal position is. Locke will also have consulted external specified lawyers and meticulously analyzed the legal situation. They seem to have come to the conclusion that AVZ's legal proceedings are watertight.
The corrupt bunch can pack their bags.

 

[Doc]

No

Genuine question and may have missed the answer - with Locke’s funding, what would happen if AVZ failed with the court cases and Locke has paid for it all and AVZ is out of cash to pay em back

Locke would have done due diligence and know the risk. They taken a calculated risk, the fact that they lending us 15m USD is in itself a positive sign that we on the right track imo

Edit: what he said

 

[JohnJoyce]

Well I guess GEO had the inside scoop on this one.
Hopefully further news to come.

Look forward to hearing any kind of feedback from this afternoon.

 

[Roon]

Locke and its funding may be a necessary evil which was clearly becoming of increasing importance and urgency. The terms highlight that. But now having read the announcement again, it seems we have replaced one existential risk to AVZ's existence with another - also with a fairly short off-ramp time-line. Risky business in the big leagues! Hope NF and Co know what they are doing - will look forward to hearing the explanations delivered at the AGM, and gain some awareness of plans in the back pocket should this situation drag beyond the next 2 years and repayment looms. While there will likely be ways to avoid the worst possible outcomes, if it comes to that, like a wider shareholder raising, it's still a legitimate concern.

Would be nice to know how much will actually need to be paid back (depending on how much we use, but a minimum of 10m) and whether the ATM facility shares transferred from Acuity would actually cover any part of that repayment, or whether that was just a freebie sweetener for the deal. I suspect the latter, but some clarity on that would be good because if that took a chunk off the repayment it might be more manageable.

Otherwise though am happy to see funding. It'll be very interesting now to see if the DRC's attitudes towards meeting us and trying to work through to a resolution change now that they understand we can't be financially starved into submission, at least in the short to medium-term. Or as easily starved anyway, we'll still need to find operating costs. I expect that their attitudes might well change!

Let's get negotiations back on track!

Also, any guesses as to what fair SP value might look like in Sep 2024? Certainly not the .01 that fat boy was offering, but then again it would be nowhere near the last traded price. Perhaps 15c? So if we do get a way out of this mess we'll see Locke acquiring about 300 million more cheap shares. Unfortunate but necessary, namely the price of doing business without much leverage.

 

[JasonM]

Locke and its funding may be a necessary evil which was clearly becoming of increasing importance and urgency. The terms highlight that. But now having read the announcement again, it seems we have replaced one existential risk to AVZ's existence with another - also with a fairly short off-ramp time-line. Risky business in the big leagues! Hope NF and Co know what they are doing - will look forward to hearing the explanations delivered at the AGM, and gain some awareness of plans in the back pocket should this situation drag beyond the next 2 years and repayment looms. While there will likely be ways to avoid the worst possible outcomes, if it comes to that, like a wider shareholder raising, it's still a legitimate concern.

Otherwise though am happy to see funding. It'll be very interesting now to see if the DRC's attitudes towards meeting us and trying to work through to a resolution change now that they understand we can't be financially starved into submission, at least in the short to medium-term. I expect that it might.

Let's get negotiations back on track!

Also, any guesses as to what fair SP value might look like in Sep 2024? Certainly not the .01 that fat boy was offering, but then again it would be nowhere near the last traded price. Perhaps 15c? So if we do get a way out of this mess we'll see Locke acquiring about 300 million more cheap shares. Unfortunate but necessary, namely the price of doing business without much leverage.

no doubt you're a glass half empty type of person. yep big price to pay but locke stumping up and risking their cash, if they win, we win.