AVZ Discussion 2022

[Xerof]

That is simple actually.

Dathcom is owned by AVZ and Cominiere.
Avz needs permission from Cominiere to sell a slice of Dathcom.

By selling a slice of GLH, they can say to cominiere 'Howzat, son'?
Not only that because GLH is registered in Singapore they also can say to FIRB the same 'Howzat, son'?

That's why the GLH was used as the holding company.

BTW fuck Dathomir.

Yes, that is the very simple and logical reason for the INDIRECT stake. Keep DATHCOM as it (cough cough) currently stands - 75/25

also acknowledge @Schnitzelfresser input

 

[cruiser51]

My 2 cents
For me, this was actually a master plan by Nigel. I never expected CATH to be part of the game or an ally again.
If that was the plan...he used Locke as bait to get Cath to the table. Cath will have shown interest in “helping” beforehand, the terms were just crap. As the announcement says, AVZ, via Locke, got an additional valuation on the pending arbitration...and for free. So all the aces were now with Nigel and I think he was able to strike a good deal. There is always room for improvement, but of course the lithium price is not strong and DRC is still a hole that no westerner dares to enter.
The fact that a large Chinese company is now covering AVZ means that many of the arguments of the corrupt are falling by the wayside. But with the best will in the world I can't believe that we are really going to build the mine and mine from it.

Never say never.

Cominiere and Zijin would love us to say we are gonna sell it.

So we are gonna mine it, capisci?

 

[Carlos Danger]

24% of 75% = 18%

30.5% of 60% = 18.3%

Just a thought

Yeah maybe.

But clearly one left Dathcom with 51%. The other?

Something is in this.

We own 75% of Dathcom

Could be CATH buying 30.5% of 75% = 22.875% exposure to Manono through GLH then Dathcom

Instead of 24% exposure to Manono direct through Dathcom

However the announcement does say 'CATH will pay AVZ US$259.25m to acquire a 30.5% indirect interest in the Manono Project'

So perhaps they are buying a larger percentage of GLH. 30.5% of 75% is just over 40%.

 

[Azzler]

They can't. No-one is going to sell it to them.

Dathcom is the JV that is/owns the Manono project.

AVZ's interest in Manono is via GLH's stake in Dathcom, via AVZI.
GLH is a wholely owned subsidiary of AVZI.

Some of the ownership disputes are things like Cominiere selling 15% interest in the Dathcom JV to Dathomir.
You'd need all JV parties to agree, and they are all fighting.

When we say AVZ owns 75% of Dathcom, we mean GLH's 60% interest, plus the 15% that was also sold to Dathomir (Cong) in violation of our ROFR.

For CATH to get a stake directly in Dathcom, they'd have to buy it from Cominiere, Dathomir, or GLH. That would immediately start a shitfight, since thoses parties are currently at ICC/ICSID arguing over who owns what in Dathcom re: the ROFR and selling 15% to Dathomir. Also remembering that Cominiere is trying to dissolve the Dathcom JV.

AVZ would never sell any of GLH's stake in Dathcom JV to CATL. It would give them a direct ownership stake and voting power.
Keeping them as a minority stake in GLH allows AVZ to remain in control.

Easier for CATL to buy a indirect stake in GLH, which owns at least 60% undisputed (as long as Cominiere/DRC aren't successful in dismantling the Dathcom JV), and possibly 75% if we get the 15% through ROFR.

So CATL taking an indirect stake in GLH means they are confident/hoping/hedging that:
- The Dathcom JV stays intact
- GLH owns at least 60%, and hopefully 75% of Dathcom
- AVZ get a license to mine via the Dathcom JV, maintaining the value in Dathcom via some sort of deal or legal win, whichever comes first.

This is a Good Thing (tm).

The funding supplied to get this indirect stake is helpful because it supplies funding for:
- litigation, ICC/ICSID fees, operational/working capital, and
- demonstrated ability to fund mining, which is required to get the exploitation permit. This is an important point that people forget.

This is a Really Good Thing (tm).

Where things get sticky are conditions around release of funding after the initial $10M and when repayment of funds becomes due. We don't have the details around that, but I'm pretty sure it will be covered off. There are still negotiations going on we aren't aware of.

One thing for sure is Cominiere will be very unhappy at this turn of events, and that alone gives me warm fuzzies.

Fantastic post Hardnut, great explaination and breakdown.

And we will get that 15% that Cong tried to take back, I'd bet my buttox on it.
Open and shut case.

 

[Azzler]

24% of 75% = 18%

30.5% of 60% = 18.3%

Just a thought

It was not 24% of AVZ's 75%, was straight up 24% of Dathcom.

We own 75% of Dathcom

Could be CATH buying 30.5% of 75% = 22.875% exposure to Manono through GLH then Dathcom

Instead of 24% exposure to Manono direct through Dathcom

However the announcement does say 'CATH will pay AVZ US$259.25m to acquire a 30.5% indirect interest in the Manono Project'

So perhaps they are buying a larger percentage of GLH. 30.5% of 75% is just over 40%.

Not sure where you get 40% from?

Cath will buy 30.5% of AVZ's Green Lithium Holding (GLH) Company.
GLH who are presently 100% owned by AVZI, has (disputed) 75% ownership of The Manono project via Dathcom.
Indirectly, CATH will own 30.5% of the company (GLH) that hold 75% of The Manono Project (Dathcom)
This represents 22.875% indirect ownership in the Manono Project (Dathcom)
CATH also own some AVZ shares, does anyone remember how many? 6% or so? That gives them a little more, around 4.5% interest in Dathcom.

 

[Carlos Danger]

It was not 24% of AVZ's 75%, was straight up 24% of Dathcom.


Not sure where you get 40% from?

Cath will buy 30.5% of AVZ's Green Lithium Holding (GLH) Company.
GLH who are presently 100% owned by AVZI, has (disputed) 75% ownership of The Manono project via Dathcom.
Indirectly, CATH will own 30.5% of the company (GLH) that hold 75% of The Manono Project (Dathcom)
This represents 22.875% indirect ownership in the Manono Project (Dathcom)
CATH also own some AVZ shares, does anyone remember how many? 6% or so? That gives them a little more, around 4.5% interest in Dathcom.

Yeah I didn't explain that well sorry I'm a bit hungover haha

The announcement says 'CATH will pay AVZ US$259.25m to acquire a 30.5% indirect interest in the Manono Project, through the acquisition of shares in Green Lithium Holding Lte. Ltd (GLH)'

So it would seem from that phrasing that it is 30.5% of Manono they are buying through the GLH shares imo

Therefore to acquire a 30.5% interest in Manono through GLH they would need to buy 40.6% of the company

30.5 / 75 = 40.6%

 

[Hodlandwin69]

It was not 24% of AVZ's 75%, was straight up 24% of Dathcom.


Not sure where you get 40% from?

Cath will buy 30.5% of AVZ's Green Lithium Holding (GLH) Company.
GLH who are presently 100% owned by AVZI, has (disputed) 75% ownership of The Manono project via Dathcom.
Indirectly, CATH will own 30.5% of the company (GLH) that hold 75% of The Manono Project (Dathcom)
This represents 22.875% indirect ownership in the Manono Project (Dathcom)
CATH also own some AVZ shares, does anyone remember how many? 6% or so? That gives them a little more, around 4.5% interest in Dathcom.

It's 30.5% of Manono project indirectly. So it's around 40% of GLH to then have 30.5% in Manono Indirectly. This 40% changes depending on how much of Manono the powers that be say we own.

For example if I am an equal 1/10th share of a trust that owns 10% of RIO then indirectly I own 1% of RIO

 

[LX600]

However, in the highly unlikely even, when Green Lithium only holds 60% of 13359, then CATH will be holding a little bit more than 50% of Green Lithium

X=30.5%/60%

In that case, AVZ lost control

 

[Carlos Danger]

However, in the highly unlikely even, when Green Lithium only holds 60% of 13359, then CATH will be holding a little bit more than 50% of Green Lithium

X=30.5%/60%

In that case, AVZ lost control

We own 75%

 

[Xerof]

Yeah I didn't explain that well sorry I'm a bit hungover haha

The announcement says 'CATH will pay AVZ US$259.25m to acquire a 30.5% indirect interest in the Manono Project, through the acquisition of shares in Green Lithium Holding Lte. Ltd (GLH)'

So it would seem from that phrasing that it is 30.5% of Manono they are buying through the GLH shares imo

Therefore to acquire a 30.5% interest in Manono through GLH they would need to buy 40.6% of the company

30.5 / 75 = 40.6%

It's 30.5% of Manono project indirectly. So it's around 40% of GLH to then have 30.5% in Manono Indirectly. This 40% changes depending on how much of Manono the powers that be say we own.

For example if I am an equal 1/10th share of a trust that owns 10% of RIO then indirectly I own 1% of RIO

However, in the highly unlikely even, when Green Lithium only holds 60% of 13359, then CATH will be holding a little bit more than 50% of Green Lithium

X=30.5%/60%

In that case, AVZ lost control

Groundhogs


https://thestockexchange.com.au/threads/avz-discussion-2022.78/page-2718#post-446605

Let's just wait and see what eventuates.

CATH % will (surely) be based on the current situation which is 75%, so the 40.6% in GLH won't change. There is no escalation or de-escalation clause mentioned. AVZ therefore does NOT lose control in the highly unlikely situation where DATHOMIR is given 15% back. And we are still going for the ROFR 15% too

So whether AVI/AVZ/GLH ends up with 60,75 or 90% of DATHCOM, CATH still only ever has INDIRECT interest in 30.5%, represented by 40.6% of GLH

p.s. maybe settlement of this shitshow is far more progressed than is being published

 

[Dazmac66]

Where did you nail the sweeties … fish have been scarily quiet the last few sessions ( sunny coast) … moon phase ?, winds ?, sharks ?….??

Managed 1 session without sharks And cleaned up in big sweetlip off caloundra. Plenty of fish out there but sharks eat the lot! Waste of time and fish.

 

[Xerof]

It's 30.5% of Manono project indirectly. So it's around 40% of GLH to then have 30.5% in Manono Indirectly. This 40% changes depending on how much of Manono the powers that be say we own.

For example if I am an equal 1/10th share of a trust that owns 10% of RIO then indirectly I own 1% of RIO

IMO, it won't change

Dathcom will always hold 100% of the project

It's only the combination of DIRECT ownership in DATHCOM that remains 'flexible'

and at worst, that would only ever be 60 GLH,15 DATH,15 COMINIERE or another party, and 10 DRC

But we are in the courts for 90/10