AVZ Discussion 2022

[PhatCatz]

is Locke funding dead? can we still draw from it if required? I don't know if it was wise to can it without ML granted... isnt this agreement only valid once ML is granted to the whole of the tenement?

So many questions I can't find an answer too.

Nonetheless it seems (on face value) a better outcome than Locke but still... i just can't trust the Chinese.

 

[Dutchaussie86]

Fatz I suggest you have another read of the ann. Your answer is there buddy.

 

[Hemicuda]

13359 is inclusive of the north, south, east and west imo

 

[JasonM]

Why do you believe AVZ HAS to say that?
It would be a pretty fucking stupid statement at this stage.

just to clarify, I'm stating avz has to say their intent is to go mining.

they're applying/wanting to recover the mining license which obviously allows them to go mining. It would be a bad look to be stating they want the mining lease so they can sell the asset. If it was avz's stated intent to sell if off on the back of this announcement, then drc may start asking themselves why grant the mining lease to a company that has no intention of going mining. all speculation on my part of course.

 

[Ashlee]

just to clarify, I'm stating avz has to say their intent is to go mining.

they're applying/wanting to recover the mining license which obviously allows them to go mining. It would be a bad look to be stating they want the mining lease so they can sell the asset. If it was avz's stated intent to sell if off on the back of this announcement, then drc may start asking themselves why grant the mining lease to a company that has no intention of going mining. all speculation on my part of course.

Jason I don’t agree with you.

 

[Roon]

The CATH deal incorporates a working capital component which wasnt included in the Locke deal. 9% interest rate not too excessive and the collateral backing not as onerous.

The initial collateral backing anyway. We don't know what the security backing is going to have to be after this first tranche is completed. They'll probably have solid leverage to push for something onerous. But that's probably a year down the line, lots of time for positive developments or momentum in that period.

 

[taofufa]

I dont think avz are going mining, they have to say that. I think they'll sell out once ml is granted. at least if there are no bidders at a reaonable price then they'll have the backup option to mine but highly confident it'll be cath and someone else that takes it mining.

Like Ganfeng TO LLL, let's hope this time will be different.

Im rather the stock remain delist for another year until the lithium pricing bounce back.

 

[DiscoDanNZ]

13359 is inclusive of the north, south, east and west imo

All I could think reading this (the dark shadowy place is the North).

 

[Scoota30]

The KEY kicker in this announcement for me is the lithium hydroxide plant, this was the golden goose that would help unlock richer downstream margins.

IMO if we can retain Majority ownership of Manono while securing 49% ownership on the Hydroxide plant, I would argue we are almost better off with this latest JV agreement than CATH are??? Interested to hear thoughts?

This would be a perfect way to make sure every party ends up getting a "slice of the pie" and can help the DRC save face (Apart from Dathomir - they can go get fucked because Cong genuinely doesn't have a leg to stand on there)

AVZI will be granted an option to purchase up to 49% of CATH's interest in a lithium hydroxide or carbonate conversion plant (LHC Plant) to be built by CATH.

 

[Xerof]

So shit stain is crowing on about dealing with the Chinese....we have always had a deal with the Chinese - seemingly the 'right type' who are prepared to come into our room thought the front door, not the 'devious cunts' sliming in the back door - you know, the ones paying him 50 cents a pop for rubbish spamming

This is a great piece of negotiation. We have admittedly given up 1.5m per 1%; not too bad given the circumstances, but it now sits as an interest outside the direct participation in DATHCOM (no mention of whether CATH gets a board seat on GLH or DATHCOM) so there's no danger of AVZ losing control of DATHCOM, even if it were to reduce back to 60%

IMO, the $259.25 buys them 30.5% of GLH, end of story, no adjustments if anything happens with the 75% in DATHCOM, as was the original deal. We will likely use some of that cash, after paying off the Pre-completion funding, to buy out the remaining 15% from COMINIERE

CATH willing to build upstream plant is fantastic, and should be a major incentive for DRC to co-operate in sorting this out

Might have to pay Locke their $1m for the inconvenience - so be it

Fees are paid to kick off the ICC and ICSID - lets get on with it asap and tidy up all these loose ends

Possibly need some clarity around "project area covered by 13359" statement - I would think they want the whole thing back but it could be read as just Roche

Great day for AVZ shareholders IMO, and I got the quinella with an EPA approval announced for VRX today too!!

 

[Hodlandwin69]

So shit stain is crowing on about dealing with the Chinese....we have always had a deal with the Chinese - seemingly the 'right type' who are prepared to come into our room thought the front door, not the 'devious cunts' sliming in the back door - you know, the ones paying him 50 cents a pop for rubbish spamming

This is a great piece of negotiation. We have admittedly given up 1.5m per 1%; not too bad given the circumstances, but it now sits as an interest outside the direct participation in DATHCOM (no mention of whether CATH gets a board seat on GLH or DATHCOM) so there's no danger of AVZ losing control of DATHCOM, even if it were to reduce back to 60%

IMO, the $259.25 buys them 30.5% of GLH, end of story, no adjustments if anything happens with the 75% in DATHCOM, as was the original deal. We will likely use some of that cash, after paying off the Pre-completion funding, to buy out the remaining 15% from COMINIERE

CATH willing to build upstream plant is fantastic, and should be a major incentive for DRC to co-operate in sorting this out

Might have to pay Locke their $1m for the inconvenience - so be it

Fees are paid to kick off the ICC and ICSID - lets get on with it asap and tidy up all these loose ends

Possibly need some clarity around "project area covered by 13359" statement - I would think they want the whole thing back but it could be read as just Roche

Great day for AVZ shareholders IMO, and I got the quinella with an EPA approval announced for VRX today too!!

It's 30.5% of Manono via indirect ownership through GLH. It's more than 30.5% of GLH as it needs to be 30.5% of the Manono project imo

 

[Xerof]

so there's a question for Nigel to clarify that bit too

 

[LX600]

Does this mean if Green Lithium only holds 60% of 13359, then CATH will be holding just a little bit more than 50% of Green Lithium?

 

[Hodlandwin69]

Does this mean if Green Lithium only holds 60% of 13359, then CATH will be holding just a little bit more than 50% of Green Lithium?

Well the math would suggest that

 

[PhatCatz]

so Green Lithium will be essentially Chinese owned. any impacts that will have on the company?

 

[TheCount]

so Green Lithium will be essentially Chinese owned. any impacts that will have on the company?

You're starting to talk like Shane.....

 

[LX600]

The odd that Green Lithium end up only holding 60% of 13359 is very very low. As long as more than 60%, AVZ still controls

 

[Frank]

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[JNRB]

Worth pointing out because I don't think its been said yet:
This probably explains the delay on paying arbitration fees.


Also, it think i initially underestimated the impact of having a hydroxide plant. This is great for us, but also a big deal for DRC. One more argument for going with AVZ / CATH and telling Zejin to fk off

 

[PhatCatz]

You're starting to talk like Shane.....

Apologies. I'm definitely cautiously optimistic. But we've been burnt many times, even with our apparent saviors CATH voting against the BOD. I just think there needs some more thinking on this "deal". ME questioning certain elements isn't meant to rain on the parade, I'm just very wary. The Chinese will continue to play games to undermine ownership. It's their Schtick. I think AVZ need tom hedge bets as best as they can.