AVZ Discussion 2022

[JAG]

 

[JAG]

 

[JAG]

 

[cruiser51]

AVZ Minerals ‘confident’ despite Manono dispute remaining unresolved​

Stuart McKinnonThe West Australian
Fri, 15 July 2022 10:40AM
Stuart McKinnon

Nigel Ferguson. Credit: Ross Swanborough - Photographer

AVZ Minerals says it is confident of a positive outcome in the dispute over its Manono lithium project in the Democratic Republic of Congo, despite the company extending the suspension of its shares.
The Nigel Ferguson-led company is locked in arbitration proceedings in the International Chamber of Commerce in Paris with a subsidiary of Zijin Mining over a claim that the Chinese company had acquired a 15 per cent shareholding in AVZ’s Manono joint venture company Dathcom from DRC-State owned enterprise Cominiere.
AVZ holds a 75 per cent stake in Dathcom with the 25 per cent balance held by Cominiere.
AVZ argues any purported transfer of a 15 per cent interest to the Zijin subsidiary, named Jin Cheng, would be a material breach of the pre-emptive rights contained in the existing Dathcom shareholders agreement.
The company has previously said it would take all necessary action to resist Jin Cheng’s “vexatious and meritless claims” and to protect Dathcom’s and its interests.
“The company has considered Jin Cheng’s claims in detail and considers them to be spurious in nature, without merit, containing fundamental and material errors, andhaving no substance or foundation in fact or law,” the company said last month.
On Friday, the company said it regretted the voluntary suspension period had lasted longer than was intended but that it had been actively engaged with the highest levels of the Government with respect to the grant of the mining licence at Manono and an update regarding its exploration rights.
“While the company remains confident of a positive outcome, it will be necessary to continue the period of voluntary suspension as the subject of the initial trading halt request remains incomplete,” AVZ said.
Last year AVZ said it had locked in $US240 million in funding from China’s Suzhou CATH Energy Technologies, which would give the company a 24 per cent stake in Manono, which has an estimated capital cost of $US545m.
CATH is jointly owned by Chinese billionaire battery investor Pei Zhenhua and the world’s biggest battery maker, China’s CATL.
In a separate statement, AVZ said diamond drilling had commenced at Manono with the aim of significantly increasing lithium resources and reserves at the Roche Dure deposit.
The company said equipment purchased as part of its early works program at Manono had started to arrive at site.
Shares in AVZ have been suspended since May, having last changed hands for 78¢.
AVZ was one of last year’s star share price performers rising 387 per cent over the 12-month period.

 

[MoneyBags1348]

View attachment 11603

Joseph Kabila was said to be the true owner of Dathomir, not Dathcom. Statements now that he is not directly or indirectly involved in Dathcom, means Dathomir aren't directly involved anymore. Just to edit an add on, the alternate view could be that Dathomir is trying to separate its entity entirely from Kabila because of it’s claim, but I imagine any claim by Dathomir is null and void and Cominiere claim they lent Dathomir 5% of their shares.

 

[Samus]

17th june:

"After further consultation with the parties to the arbitration, the ICC will now decide whether the arbitral tribunal will be constituted by a single arbitrator (Jin Cheng's preference) or 3 arbitrators (AVZI's preference). This will take about 4 weeks."

 

[Winenut]

What I've done is download the Facebook video using a browser extension and then found a paid transciption site (free ones didn't seem to cut it) that will allow me to upload the video and obtain a transcript in French. Then I'll need to run it through Google translate or similar. Has cost me $24 but compared to my investment in AVZ that's bugger all. File is currently transcribing - might take an hour.

24 bucks Tax deduction

 

[Winenut]

17th june:

"After further consultation with the parties to the arbitration, the ICC will now decide whether the arbitral tribunal will be constituted by a single arbitrator (Jin Cheng's preference) or 3 arbitrators (AVZI's preference). This will take about 4 weeks."

So does that mean they should have by now decided whether to proceed with 1 or 3 arbitrators

If that's correct then when will the actual hearing be and how long is that process expected to take?

 

[Samus]

So does that mean they should have by now decided whether to proceed with 1 or 3 arbitrators

If that's correct then when will the actual hearing be and how long is that process expected to take?

Personally NFI about arbitration procedure but quick and dirty google says:

"The process and timetable must be decided – these will be worked out between the parties and the tribunal. Both should be designed to fit the requirements of the particular dispute"

"Hearings can last from half a day to many weeks or even months depending on the issues at stake."

Arbitration process

Arbitration is a contract-based form of binding dispute resolution.

www.stewartslaw.com

If it turns out we have to go through the process, sooner the better imo.

 

[BEISHA]

17th june:

"After further consultation with the parties to the arbitration, the ICC will now decide whether the arbitral tribunal will be constituted by a single arbitrator (Jin Cheng's preference) or 3 arbitrators (AVZI's preference). This will take about 4 weeks."

 

[JAG]

View attachment 11620

 

[MoneyBags1348]

Joseph Kabila was said to be the true owner of Dathomir, not Dathcom. Statements now that he is not directly or indirectly involved in Dathcom, means Dathomir aren't directly involved anymore. Just to edit an add on, the alternate view could be that Dathomir is trying to separate its entity entirely from Kabila because of it’s claim, but I imagine any claim by Dathomir is null and void and Cominiere claim they lent Dathomir 5% of their shares.

Just to add to my previous post, I have since found that AVZ did say in an interview with Global Witness that “it had found no adverse information about Dathomir’s owner and it had engaged in a due diligence process that found no ‘inappropriate links’ to the regime of former DRC President Joseph Kabila”. Which is one reason I find having to sift through unrelated and less informative information only slows up the process when you are trying to dig up as much relevant information as you can with the time you’ve got

 

[Rediah]

Would it be fair to say we are in
a) better position
b) same as before
c) there is no “c”
than where we were a week ago with these latest developments, announcements and activities in DRC
English is not my first language so I miss between the line information in these press releases and announcements.
Personally I think we are in a better position, yes?

 

[MoneyBags1348]

Would it be fair to say we are in
a) better position
b) same as before
c) there is no “c”
than where we were a week ago with these latest developments, announcements and activities in DRC
English is not my first language so I miss between the line information in these press releases and announcements.
Personally I think we are in a better position, yes?

a) better position

 

[Chase]

Would it be fair to say we are in
a) better position
b) same as before
c) there is no “c”
than where we were a week ago with these latest developments, announcements and activities in DRC
English is not my first language so I miss between the line information in these press releases and announcements.
Personally I think we are in a better position, yes?

B

 

[Mickyb64]

Would it be fair to say we are in
a) better position
b) same as before
c) there is no “c”
than where we were a week ago with these latest developments, announcements and activities in DRC
English is not my first language so I miss between the line information in these press releases and announcements.
Personally I think we are in a better position, yes?

(a)

 

[aanti.dumb]

To start ..., don't forget:

One bird in the hand is worth two in the bush.

If Zijin would pay AVZ an amount in excess of USD 1.5 billion for 30% of AVZ's 75% ownership of Dathcom and the final ownership split would be:

AVZ 45%
Zijin 45%
DRC 10%

AVZ/Zijin operatorship of the mine, Catl as a secured off take customer/DRC battery manufacturer, I can see merit in this idea.

But Zijin suggesting to pay AVZ USD 500 million is very simple laughable.
AVZ is not as stupid as Cominière.

AVZ so far has developed this resource from an abandoned tin mine to a discovery of a mammoth lithium/tin resource.

AVZ never owned the 15% it intended to buy from Cominière, that deal is between Zijin and Cominiè/DRC government (who got screwed in the process by its corrupt players, That is Felix' mess to sort out and AVZ should not get involved in this mess).

It allows to proceed with this mine, stop the legal mess and move on.
Yes AVZ will finish up with 6% less, but it partners with a huge miner with large operations and mining experience in the DRC.

AVZ will have also after the dust settles enough funds to progress with different projects.

Just my 2 bob worth

It allows AVZ quickly together with Zijin to develop this mine into a massive operation.

Maybe I'm just dreaming, but I don't want this impasse to develop into a disaster.

AVZ 45%
Zijin 45%
DRC 10%

I don't think this can happen. My understanding is that a condition of the ML is that than one party maintain a MAJORITY ownership whish is %51.

 

[Chase]

AVZ 45%
Zijin 45%
DRC 10%

I don't think this can happen. My understanding is that a condition of the ML is that than one party maintain a MAJORITY ownership whish is %51.

I'm only new to this..but is the 51% required majority needed to be from Dathcom or AVZ itself?

 

[Chase]

I'm only new to this..but is the 51% required majority needed to be from Dathcom or AVZ itself?

Yeah just worked that one out..all good no reply needed

 

[Samus]

I'm only new to this..but is the 51% required majority needed to be from Dathcom or AVZ itself?

I believe it's actually Dathcom (ie the company who applied for the licence) that must hold at least 51%.