AVZ Discussion 2022

[Goat]

Not hugely surprised by this. There's not much reason for the DRC to talk to AVZ prior to the peace deal being signed - quite the opposite in fact. And Nigel had no option but to resume the legal case in the interim.

If all goes well, shouldn't be long to wait. Reportedly, the terms for the peace deal have been agreed with it to be signed in the next week.

Following the peace deal, the DRC will have to honour the agreement to allow the USA access to minerals in return for the peace deal.

After the peace deal is signed Kobold, AVZ and the DRC should start on the paperwork for a mining licence to be granted to Kobold, with AVZ to drop the legal case and receive compensation from Kobold. (Hopefully there will also be a Capital Gains Tax waiver from the DRC as part of the deal.)

At some stage after the peace deal is signed I'd expect an announcement from AVZ that they are working on a deal with Kobold and the DRC.

That said, there is still some potential for Chinese or DRC skull-duggery. But the potential is low given the USA's involvement and Felix's desire for security via the peace deal. The Chinese will probably be happy that Zijin keeps the North. I think AVZ and Kobold have probably already agreed the broad terms and price of their part of the deal. The DRC should be happy to see Manono developed and the legal case settled.

It'll b a neat solution if it all comes off at a decent price (at least $1 AUD per share).

Think about is from this angle.
The US encouraged AVZ to pause proceedings right? Why did they bother with that course of action?
US could have just said "Here, take $10B AVZ and we'll sort the cat fight out for ourselves".
But no. I believe that the mining license needs to be granted to AVZ, then a legal title transfer to occur to Kobold. If the DRC decide to grant Kobold a license in their own court system it won't be worth the paper it's written on as clearly demonstrated in the past.

The DRC can't allow USA the minerals whilst AVZ is still in dispute of legal ownership, that causes a huge array of legal implications down the track.

Anyways, I could be full of shit like Felix is, so who knows WTF is actually going on.

 

[BEISHA]

And this is why this site is needed. I think the commentary this morning has managed, in the space of about 2 hours, to go through the entire cycle of grief..........

View attachment 87530

Kind of like this cycle me thinks...

 

[Goat]

I also think the wording of the prior announcement regarding the non binding MOU was the clincher.
"AVZ to be fairly compensated"
This means AVZ was not even in the picture regarding any negotiations with the DRC. DRC was going to simply hand it to Kobold and it was up to Kobold to act in good faith and pay AVZ some coins on the way out.

It's fucked.. I was hopeful, but not now. Maybe some of the early tooters bloating about cents on the dollar know something.

 

[BEISHA]

I don't disagree at all and I'm sure most of us would like to march up and look them in the eye while giving them a piece of our minds, but name calling and ineffective insults over social media is akin to throwing toys out of the cot and isn't pragmatic to our cause imo. True or not, in this instance it has the potential to be working against what the board are trying to achieve...and they have said as much in an official announcement.

Yeah i know, you are right of course, in fact i did ask everyone on this forum to refrain when our BOD requested restraint and we begrudgingly did.

Yet here we are.

AVZers still getting disrespected and pineappled.

 

[BEISHA]

I also think the wording of the prior announcement regarding the non binding MOU was the clincher.
"AVZ to be fairly compensated"
This means AVZ was not even in the picture regarding any negotiations with the DRC. DRC was going to simply hand it to Kobold and it was up to Kobold to act in good faith and pay AVZ some coins on the way out.

It's fucked.. I was hopeful, but not now. Maybe some of the early tooters bloating about cents on the dollar know something.

keep the faith mate, todays announcement was disappointing, but we all just need to remember that Manono is no ordinary deposit, which is why we are stuck in a shit fight, cause everyone wants a piece of the pie.

We will get a result and move on, that i dont doubt, just a matter of how much and .....when ?

 

[Flight996]

Not hugely surprised by this. There's not much reason for the DRC to talk to AVZ prior to the peace deal being signed - quite the opposite in fact. And Nigel had no option but to resume the legal case in the interim.

If all goes well, shouldn't be long to wait. Reportedly, the terms for the peace deal have been agreed with it to be signed in the next week.

Following the peace deal, the DRC will have to honour the agreement to allow the USA access to minerals in return for the peace deal.

After the peace deal is signed Kobold, AVZ and the DRC should start on the paperwork for a mining licence to be granted to Kobold, with AVZ to drop the legal case and receive compensation from Kobold. (Hopefully there will also be a Capital Gains Tax waiver from the DRC as part of the deal.)

At some stage after the peace deal is signed I'd expect an announcement from AVZ that they are working on a deal with Kobold and the DRC.

That said, there is still some potential for Chinese or DRC skull-duggery. But the potential is low given the USA's involvement and Felix's desire for security via the peace deal. The Chinese will probably be happy that Zijin keeps the North. I think AVZ and Kobold have probably already agreed the broad terms and price of their part of the deal. The DRC should be happy to see Manono developed and the legal case settled.

It'll b a neat solution if it all comes off at a decent price (at least $1 AUD per share).

Re: Following the peace deal, the DRC will have to honour the agreement to allow the USA access to minerals in return for the peace deal.
After the peace deal is signed Kobold, AVZ and the DRC should start on the paperwork for a mining licence to be granted to Kobold, with AVZ to drop the legal case and receive compensation from Kobold.

My understanding is that the US-DRC minerals for security deal involves primarily the copper and cobalt mines of south DRC and neighboring Zambia, with the Lobito Corridor as the main export route for the extracted minerals.

However, the deal does not specifically mention the Manono project or lithium as core elements of either the security deal or the Lobito transport arrangements. Manono is like an afterthought, but an important and high-value afterthought nonetheless.

The risk is that the minerals for security deal can progress and evolve separately, and Manono is left as a stranded resource with only the Chinese scratching away at its wealth. In this case, nobody wins, and KoBold may seek less risky opportunities elsewhere. Let's face it, would KoBold really want to deal with those clown-hats for the next twenty years.

Cheers
F

 

[tonster66]

Think about is from this angle.
The US encouraged AVZ to pause proceedings right? Why did they bother with that course of action?
US could have just said "Here, take $10B AVZ and we'll sort the cat fight out for ourselves".
But no. I believe that the mining license needs to be granted to AVZ, then a legal title transfer to occur to Kobold. If the DRC decide to grant Kobold a license in their own court system it won't be worth the paper it's written on as clearly demonstrated in the past.

The DRC can't allow USA the minerals whilst AVZ is still in dispute of legal ownership, that causes a huge array of legal implications down the track.

Anyways, I could be full of shit like Felix is, so who knows WTF is actually going on.

To be issued a mining license you need the 4 approvals then the decree issued. AVZ is the only company who has done this, so they could be the only legitimate company that could receive a license.

 

[Panther22]

To be issued a mining license you need the 4 approvals then the decree issued. AVZ is the only company who has done this, so they could be the only legitimate company that could receive a license.

Yes, but DRC rarely play by the rules.

 

[Winenut]

To be issued a mining license you need the 4 approvals then the decree issued. AVZ is the only company who has done this, so they could be the only legitimate company that could receive a license.

Zijin got one.....I think

Well they're mining up on the north section so they must have I guess

 

[Mute22]

Before I let myself spiral into full-blown depression over the thought of years tied up in court battles and uncertain compensation, I’m holding out hope.

Let's wait to see how the U.S. Peace and Minerals for Security agreements play out.

That could either be the turning point we need, or we are utterly fucked.

 

[wombat74]

I also think the wording of the prior announcement regarding the non binding MOU was the clincher.
"AVZ to be fairly compensated"
This means AVZ was not even in the picture regarding any negotiations with the DRC. DRC was going to simply hand it to Kobold and it was up to Kobold to act in good faith and pay AVZ some coins on the way out.

It's fucked.. I was hopeful, but not now. Maybe some of the early tooters bloating about cents on the dollar know something.

You could speculate if AVZ had gone bust at the end of last year would Kobold now have Roche Dure ? AVZ handed Kobold a sh1t sandwich today . If the DRC are against AVZ then Kobold is out .

 

[hedrox]

I don't know about this announcement....a bit of a nothing announcement. I believe there are to many moving parts in the whole story...
The silence of CATH or any Chinese players doesn't make sense at all to me. A big question is as well who will build the lithium refinery? A refinery in Manano is necessary for cheaper transportation to make it price compatible. Zijin and whoever will get hold of Roche Dur will have the same problem and a joint venture would make sense instead of building 2 expensive refineries. For sure Cath want to get in some way or other a slice of the cake. I got the feeling that CATH is somehow still on the table.There is probably much more going on, what we don't know and what Nigel can't talk about atm. Imagine how many tight lips talks about Manano the biggest Lithium deposit in the world were held or still ongoing.
I think Kobold are only flexing muscles atm, trying to get the best deal done, while other parties in the background are watching and preparing to counter offer. In the last announcement from 24th of Mai Nigel clearly stated...

All discussions with Kobold were always NON BINDING....This was Nigel's choice not Kobolds....wondering why?

 

[Hemicuda]

Before I let myself spiral into full-blown depression over the thought of years tied up in court battles and uncertain compensation, I’m holding out hope.

Let's wait to see how the U.S. Peace and Minerals for Security agreements play out.

That could either be the turning point we need, or we are utterly fucked.

Yup this mornings news read like a funeral notice.

 

[Skar]

If you put yourself in the position of all the parties things are progressing as they need to:

-AVZ need to pursue our legal rights, Full reinstatement of our tenement (north and south), ML and compensation for lost revenue. At the request of the US we agreed to a temp pause, we had no contact, inclusion or progress during it (our rightful dues should not be contingent on US involvement. ICC/ICSID is the right course if DRC won't engage, its why they exist).

-DRC have a lot going on, with security in the east and a massive strategic realignment, its no surprise they are ignoring AVZ until that is sorted. There is also a lot of corruption and irregularities that every politician would want to distance themself from. Once peace deal signs I think they will deal with Kobold and AVZ (which is only a small dot point of the overall minerals for security deal).

-US want the minerals and supply chain security. Kobold want to acquire Manono in the most commercially advantageous way possible. Paying 1B USD is much better for them than paying 10B USD (which is why AVZ need to hit the gas on ICC/ICSID to be in a better negotiating position if Kobold wont stump up).

-CATH, if the litigation funding is anything to go by. Are willing to sit on the sidelines watching everything unfold and will only act at the very last minute, if they need to secure their investment/interests.

TL;DR
Its possible AVZ are wasting money by pursing legal avenues they will later agree to abandon but its far worse to abandon or continue to put on hold and then need that avenue pursued.

 

[Mute22]

AVZ Minerals to resume proceedings against DRC over disputed lithium deposit

The unresolved issue poses a potential hurdle for California-based metals exploration firm KoBold Metals' plans to acquire AVZ.

www.mining.com

AVZ Minerals to resume proceedings against DRC over disputed lithium deposit​

Reuters | June 23, 2025 | 5:45 pm Battery Metals Africa Lithium

The Manono lithium-tin project in the DRC. (Image courtesy of AVZ Minerals.)
Australia’s AVZ Minerals said on Tuesday it will resume proceedings against the Democratic Republic of Congo (DRC) over mining rights to the Manono lithium deposit after the parties were unable to reach a settlement on a legal dispute over the deposit.

The unresolved issue poses a potential hurdle for California-based metals exploration firm KoBold Metals’ plans to acquire AVZ Minerals’ stake in one of the world’s largest hard rock lithium deposits.

AVZ initially held the permit to develop the Manono project, but in 2023 the DRC’s mines ministry revoked this permit on the basis that the project had not advanced quickly enough.

The rights were later granted to a unit of Zijin Mining, prompting AVZ to seek relief through both the International Court of Arbitration of the International Chamber of Commerce, and the International Centre for Settlement of Investment Disputes (ICSID).

The US government has been encouraging the parties to settle the dispute, which led AVZ to temporarily suspend the ICSID arbitration proceedings in late May.

AVZ, whose shares were suspended in May 2022 and delisted two years later due to the dispute, said DRC did not engage with AVZ during the suspension period and the suspension has lapsed.

The ICSID proceeding will now resume, the company said.
KoBold Metals did not immediately respond to a Reuters request for comments.
(By John Biju and Aaditya Govind Rao;

 

[wombat74]

Be nice to get some feed back from Kobold . They got f--ked over big time today by their DRC chumps . Got a steaming pile of dog sh1t for their months of effort . Expect it will make the media : "KOB--LD TAKES IT UP THE ARSE IN THE DRC" ----- " KOB--LD BROWN BAGS TOO SMALL TO SEAL MANONO DEAL " --- " KOB--LD ATTEMPT TO F--K OVER AVZ MINERALS KILLS OFF MANONO ERECTION ."

 

[Mute22]

Be nice to get some feed back from Kobold . They got f--ked over big time today by their DRC chumps . Got a steaming pile of dog sh1t for their months of effort . Expect it will make the media : "KOB--LD TAKES IT UP THE ARSE IN THE DRC" ----- " KOB--LD BROWN BAGS TOO SMALL TO SEAL MANONO DEAL " --- " KOB--LD ATTEMPT TO F--K OVER AVZ MINERALS KILLS OFF MANONO ERECTION ."

KoBold Metals did not immediately respond to a Reuters request for comments.

CEO couldn't shut his mouth only a few days ago.

 

[Doc]

For the first time I saw someone in the wild reading TSE, who was the solo traveler at the Qantas first lounge this arvo?

 

[cruiser51]

You could speculate if AVZ had gone bust at the end of last year would Kobold now have Roche Dure ? AVZ handed Kobold a sh1t sandwich today . If the DRC are against AVZ then Kobold is out .

The DRC and AVZ had to show to the USA that they had good intent and were prepared to negotiate.

Also the DRC considered any delay in ICSID proceedings something they had been playing for all along, so of course they agreed and hoped AVZ would go for another extension and another and another.
It is obvious the DRC miscalculated on that point.

However with the inclusion of CKK on the 'expert team' of the DRC to advice FT, it was painfully obvious that AVZ had Buckley's chance for the DRC being willing to negotiate with AVZ.
CKK would sign his own and wife's death sentence if he would.

In my opinion the DRC did themself a disservice in showing they had no intention to negotiate with AVZ at all, after AVZ went ahead and agreed with the DRC to apply for a suspension of the proceedings to make negotiations possible in a gesture of goodwill.

Of course the ICSID will take the DRC's attitude in consideration and, imo, it is not helpful for the DRC in its case against AVZ.
Any further attempt from the DRC to delay again will highly likely return a fuck off.
Also there is no reason for ICSID to drag this out and continue with its proceedings ASAP and a speedy outcome.

The advantage for AVZ is that ICSID will give a verdict expressed in a monetary value, so Kobold knows also what the go is.

In my opinion it is not all bad, but was to be expected.

It is clear that Felix's choice of 'expert advisors' gave an early indication the way the DRC would go.
One only has to read CKK's Communique posted on 24/3 in response to the ICC ruling that Cominière had to pay AVZ €39 million in which he made it very plain, he did not recognise any AVZ claim over Manono in any shape or form, therefore 'What fine?'.

To believe that he would advice after that to negotiate with AVZ would be playing with your willy.

All IMO.

 

[Pokok]

For the first time I saw someone in the wild reading TSE, who was the solo traveler at the Qantas first lounge this arvo?

Was he heading to the DRC