AVZ Discussion 2022

[tolate]

thank you for doing the math. this is the point I was confused about. Let's hope this doesn't go the way of LLL.

Very clear who was bent over the TABLE...!
One would ASSUME there was never no Locke Deal that was dragged out over 12 mths..!!

"""""""""""""""""Release of break fee arrangements"""""""""""""
There are no break fee arrangements.
The escrowed US$20 million break fee paid by CATH into an escrow account under the original TIA will be released to CATH.

So the money the said 20 mill was in a ESCROW account released to CATH so AVZ could borrow it ...LMAO
Cath done real well...!
ICING on their agreement """"""with many conditions that AVZ need to ABIDE TO..!...imo

""""""""""""""""""""""""""""""""""Consideration"""""""""""""""""""""""""""""""""""""""
EXTRA 6.5 % for 19 mill ....CATH have done real well...in this deal...!!!!!!!!!!!!

Under the terms of the revised TIA, CATH will acquire an indirect 30.5% interest in the Manono Project,
through the acquisition of shares in GLH (a wholly owned subsidiary of AVZI and the holder of legal
title to AVZ's interest in Dathcom), for cash consideration to AVZ of US$259.25m.

Mining License needs to be achieved...imo or no deal

 

[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%

 

[lithiumavz]

LHC plant is the key. CATH & AVZ can provide this gold goose to DRC government. Due to current lithium price, DRC cannot get enough money from ZIJIN's digging&shippment mode. So CATH & AVZ WON!

 

[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.

 

[Azzler]

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%

Oh right, yes I had read it incorrectly.

 

[PhatCatz]

24% of 75% = 18%

30.5% of 60% = 18.3%

Just a thought

so AVZ essentially giving up the 15%? or at least negotiated outcome somewhere.

 

[PhatCatz]

Unfortunately, I feel that CATH and Zijin will form a joint venture (possibly taking DRC share of the pie due to "misleading Zijin" as compo instead of ICC) and will work with AVZ...

Why I'm worried about the controlling interest of the whole deposit if AVZ have what they have now (plus the CATH Deal if ML is granted) and lets speculate that everything else goes to the chinese (including the 10% DRC have).

Zijin will not go away and if anything, this is a movement that will strengthen their ties to the company using the "good guy" CATH. Watch what happens over the coming months.

 

[tolate]

so AVZ essentially giving up the 15%? or at least negotiated outcome somewhere.

Maybe this is more to the TRUTH of it ALL...imo
AVZ has proven that as the lead in the project they were not able to progress forward, this was due to all the detractors and all the roadblocks which popped up at every single turn. We were never going to move this forward as the lead, China was always going to obtain the control, no matter how long it took. The reason this has stalled is because until now China had not gained the control.

This deal gives Pei control of the project. Through this transaction he is getting 30.5% of the project (of which we owned 60% undisputed). So effectively AVZ has sold more than 50% of their share in the project. The 15% with Cong/Dathomir still needs to be resolved, plus the 15% first right of refusal is still arguably on the table somewhere.

The .5% is very interesting and where the clues lie as to how this ends up...

On completion of the TIA (and prior to the resolution of Dathomir + First right of refusal) AVZ will own 29.5% of the project. Pei will own 30.5%

Pei is now going to negotiate the ML and resolve the outstanding issues. So what will Pei get in addition to his 30.5%? Well he clearly wants control, and probably only has a mandate to negotiate on the basis that he does has the control over the project. So will he go after our 15% from Dathomir? Nigel must stay strong on this. That is ours, AVZ did a capital raise in Australia for that, we paid the transaction fees in accordance with the law and the deal terms. The we had the money returned, only to then be stolen from our farking bank account. That 15% is OURS, don't bend the knee on that Nigel.

If Pei needs control, give him the first right of refusal on the other 15%.

Then we have 44.5%, Pei has 45% and the DRC 10%.

I do believe the deal at present is good for us. It de-risks us big time, sure we lose some equity, but let's face it, we had nothing, we were on the canvas. The count was at 9.... Locke Funding was brutal, and meant court cases for years. Nightmare... At least here we have optionality. We can fund our share of development with with the $259m, or we can borrow from Pei at 9.00% and repay via profits, or we can raise money and fund via alternative means.

The key here is that the project gets fast tracked by Pei. Let's face it, we would take years and years to move it along. No ASX company can honestly be listed on the ASX and run a project in DRC. Too may anti corruption and bribery rules need to be broken just to operate in country.

In my opinion, even if Pei resolves the Dathomir issue, Nigel should NOT give up that 15%. A final standing of 29.5% would be a pretty big pummeling for the board. Let's hope we can get the extra 15% or at least 10% of that 15%, so we end up at 39.5% - 44.5%. Let's then sit back and let China do all the work and collect some divies in a few years.

Don't be mistaken people, we don't have control of the project anymore, but given the way this has played out to date I don't think that that is a bad thing. Let's get this thing going...

 

[BRICK]

Wheres the unlike button

 

[Xerof]

Yes Phat, you repeatedly keep telling us you're worried

 

[cruiser51]

Unfortunately, I feel that CATH and Zijin will form a joint venture (possibly taking DRC share of the pie due to "misleading Zijin" as compo instead of ICC) and will work with AVZ...

Why I'm worried about the controlling interest of the whole deposit if AVZ have what they have now (plus the CATH Deal if ML is granted) and lets speculate that everything else goes to the chinese (including the 10% DRC have).

Zijin will not go away and if anything, this is a movement that will strengthen their ties to the company using the "good guy" CATH. Watch what happens over the coming months.

Ever tried a gin tonic to relax?

After feeling relaxed, you can take a gin tonic to celebrate some good news for a change.

After the celebration gin tonic, you wouldn't have a clue why you were worried.

On another note, some idiot wants ugly cancer photos on gin bottles and other alcohol containing containers to warn us.
I reckon after a couple of glasses people will say 'Wazzat?', pointing at the picture.

Just imagine Jesus during the Last Supper pouring wine out of a bottle with a cancer warning.
They would have to change Leonardo da Vinci's painting.

 

[Azzler]

View attachment 75731

Tolate post now deleted seems a bit odd. Posted with the wrong account perhaps? Or is TSE Tolate a different person to HC Tolate? hmmm

It's a copy paste of a HC post, cant remember who. (Widdon or something IIRC)
It's 100% Not Tolate from HC, its 99% Der Geist, using that name because he knows it annoys us.
Please delete your post too, or Moderate it to remove his post, and report all their posts in future.

 

[Samus]

Is fucking toilet still here folks?
I've ignored that cunt!

Anyway, I'm still alive if some of you were worried

Not sure what to make of the announcement but the terms of the locke deal seemed less than ideal.

Hopefully it's a positive and the start of some real progress finally.

Thanks all for the info I've been skimming over, been a bit distracted of late but I liked the good posts even if I didn't hit the like button.
All the rubbish from the emerged chinese stooges I didn't like, those scum can get fucked.