The shareholders of AVZ Minerals will meet at a General Meeting on November 23 to appoint 3 directors, in order to regain the confidence of the Congolese Government and all the partners of the "Manonium lithium" project.
Relations between AVZ and government agencies in the DRC are not in good shape, six years after the acquisition by this Australian company, through its subsidiary AVZ INTERNATIONAL PTY LTD, of about 60% of the shares of "DATHCOM MINING", a project set up to promote, among other things, the mobilization of funds to carry out feasibility studies before the stage of the exploitation of a lithium deposit, one of the largest in the world, located in the territory of Manono, in the province of Tanganyika.
In accordance with this joint venture contract concluded between partners in January 2017, AVZ, it should be noted, was responsible for managing DATHCOM MINING, by the appointment of the Chairman of the Board of Directors, the Chief Executive Officer and the majority of the directors.
Despite the assignment of DATHCOM's key positions to this Australian company, the work stopped net on the ground, there was no transformation of the PR 13359 Research Permit into an Operating Permit; the joint venture contract was also terminated, the PR 13359 Research Permit was, in the end, deregistered in the name of DATHCOM and returned to COMINIERE SA.
Beyond that, the feasibility study was only done on 1/3 of the mining concession, many conflicts broke out between AVZ INTERNATIONAL PTY LTD (a 100% subsidiary of AVZ Minerals) and almost all minority shareholders, it was learned, either because of the opacity and recklessness in management, or because of AVZ's disproportionate appetites to want to appropriate almost all the shares of minority shareholders at a derisory price. Ultimately, the project is at the heart of several trials before national and international courts.
Thus, the shareholders of AVZ Minerals must unite as one man to choose themselves, during this general meeting, its conciliatory leaders, wise and experienced in the negotiations, insist several observers who persist and sign that "it is at this single price that Manono lithium will once again become superb for the good of all, the country, the local populations and shareholders, both DATHCOM MING and AVZ Minerals".
Some are already inviting the directors who will be appointed to be respectful of the Congolese State, the company of the COMINIERE SA Portfolio, holder of the mining title, and the rights of other partners with whom it is necessary to privilege the path of negotiation and not that of trials.
Although, according to some information, the Australian Law Company has begun negotiations with the Congolese Government through the Ministry of Justice regarding the arbitration initiated by the latter against the Democratic Republic of Congo before the CIRDI in New York, - which is appreciable - it should be stressed that DR Congo is not a shareholder of DATHCOM MINING. Its interests are validly represented by COMINIERE SA in the joint venture.
In the new configuration of its management strongly announced in the coming weeks, AVZ Minerals will have to negotiate with:
- the holder of the mining title, COMINIERE SA, holder of 10% of the shares that represents the interests of the DRC in the joint venture,
- DATHOMIR with which it concluded two contracts for the sale of 15% of the shares, terminated contracts
- and JIN CHENG who acquired 15% of the shares from COMINIERE SA.
This is an approach that would, according to many, make it possible to give the project the chance to quickly revive and develop. "Leaving aside the other shareholders would mean leaving intact all the conflicts that undermine the project".
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