AVZ Discussion 2022

[Frank]

​

Just for people who believe ICSID can't force the DRC to play by the book:

The World Bank has an investment portfolio for the Democratic Republic of the Congo that includes 29 active projects totaling US$3.8 billion in association with the International Development Association (IDA), the International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). The portfolio is divided among various sectors, with 63% allocated for infrastructure, 16% for human development, 15% for development of the private sector and agriculture, and 6% for governance and mining projects.[6]

ICSID and the World Bank Group​

ICSID is one of the five organizations of the World Bank Group, along with the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). The goal of the World Bank Group is to end extreme poverty within a generation and to boost shared prosperity.
Each of the five World Bank Group organizations contributes to the overall goal of poverty reduction through its particular work.

ICSID​

Provides facilities for conciliation and arbitration of international investment disputes.

IBRD​

Lends to governments of middle-income and creditworthy low-income countries.

IDA​

Provides interest-free loans, called credits, and grants to governments of the poorest countries.

IFC​

Helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.

MIGA​

Promotes foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people's lives by offering political risk insurance (guarantees) to investors and lenders.


Icsid is not just a paper tiger.

Fuck Zijin

Fyi, I see where,

The country intends to rely on China to finance a range of projects in different sectors​

To better implement projects designed to develop a number of sectors including Transport in the Democratic Republic of Congo (DRC), the Deputy Prime Minister, Minister of Transport, Wayways of Communication and Outreach, Jean-Pierre Bemba Gombo intends to rely on China.

With this in mind, he presented a note to the Council of Ministers on Friday 22 November 2024.

In the information note presented to the Council of Ministers, Jean-Pierre Bemba Gombo refers to the "preparation of lists of projects to be submitted to Chinese financial institutions in the framework of Sino-Congolese cooperation".

In this connection, the report of the Council of Ministers provides information on the report of the Council of Ministers, the Deputy Prime Minister, Minister of Transport, the Ways of Communication and Disclosure, submitted the report of the fourth meeting of the Task Force, held on 12 November 2024, in connection with the submission of the final lists of projects to be submitted to the Chinese side with a view to their defence to the Chinese financial institutions next December.

For a proactive approach, it was recommended that sectoral ministries submit a number of elements to the Task Force Secretariat.

In particular, a summary sheet of each project, an APS or ODA feasibility study accompanied by an executive summary for each project, as well as the designation of a project focal point for each ministry.

The Deputy Prime Minister, Minister of Transport, Ways of Communication and Land-up Landing encourages ministries that have not yet submitted their plans to do so as a matter of urgency.

As a reminder, China and the Democratic Republic of the Congo have identified seven priority axes for their cooperation: infrastructure (airports, ports, railways), agriculture, energy and water resources, processing of mineral resources, health, vocational training and cultural exchanges, and scientific research.

mediacongo


Fuck Zijin !!!

YES - By all means possible !!!

 

[titan]

China have successfully weasled their way into the north and may end up retaining the north (they will have to pay for it if they keep it), however they don't have a leg to stand on for the hydro plant IMO

ⁿ

Hi All

Well it looks like @grassseeds , @j.l have given a good assessment of the AGM, i concur with all of the info they shared, i am a bit late with my assessment due to the fact i was on the piss from 11.30 am - 6pm, then had to drive @EarleofBarrow back home, which meant i was in the shit from my missus for being late for dinner and then i passed out on the couch as my brain was fried......lol

View attachment 73564

So the AGM was chalk and cheese compared to last year.

Instead of doom and gloom shrouded by fat tail in the back ground ( last year ) , it was upbeat and very positive this year

Pre AGM remained the same tho ( without the party poppers ), with Yianni cajoling the 20 odd folks in for a chat about the lay of the land, he mentioned it was unlikely that question time would be available at the AGM considering the strong possibility that Carrick and other adversaries could be there, so the plan was the BOD would quickly get the business of getting Rhett Brans & Salome Sijaona re elected then they would come back to the Herdsman Tavern for question time instead without the pests involved , but to our great surprise, our adversaries were not there so question time was freely invited ........so as usual, i didnt hold back.

a) Does AVZ have the support of Australian & US government ?

Sadly, our Australian govt doesnt give a fuck about our predicament, they are simply subserviants to China, even Pauline Hasnson couldnt give a shit either, I got talking to @Jazz and he mentioned to me he scripted a letter and sent it to all the main stream media in Australia, same attitude, not interested..........PATHETIC !

The irony of that ( which wasnt lost on Nigel ) is this recent development.....

Why is the WA government handing $150m to lithium miners in a cost of living crisis?

Premier Roger Cook says its rescue package recognises the thousands of jobs hanging in the balance, but a mining analyst says "it really doesn't touch the sides" amid an oversupply of lithium and disappointing electric vehicle sales.

www.abc.net.au

Yet AVZ manono whos size dwarfs the likes of MIN, LTR, PLS etc collectively cant get a cracker and if China was able to achieve the steal of the century, then LTR, PLS, MIN and a whole heap of other lithium producers would be in permanent C & M !!...........nuts!

The good news is tho, US Government are very aware of AVZ predicament thru the Biden administration and BOD is confident that Trump administration will follow with interest too

b) Locke funding / working capital

DLA piper are absolutely thrilled to get this funding finally sorted, despite AVZ dominant positition in the respective ICSID / ICC arbitration cases, the cupboard was virtually bare in the way of funds to get to the finish line. Fact of the matter, DLA piper has virtually been working pro bono the last few months, BOD havnt taken a wage for months too, make no mistake folks, the aim of the chinese to bleed AVZ dry was very close to succeeding ...........now they are FUCKED !

View attachment 73566

With Locke funding secured, Corporate world will fill the void for working capital to see AVZ thru, with DEBOSS in the back ground making that happen.

Funding is no longer a problem and it has flipped the coin big time to our advantage , this is the pivotal moment to get the snow ball to grow and evolve to a ultimate conclusion and everyone is confident that it will happen, just a matter of time as DRC / China are backed into a wall now

c) ISCID - lack of court fees paid

Unbelievably, both DRC govt & AVZ didnt pay their respective fees and if you hadnt worked it out by now, you know why AVZ didnt pay theirs until Locke funding arrived.......

Now AVZ will pay their fees and the DRC fees to keep the pressure on..........its farken bonkers, but it is what it is.

d) Dathomir $20m Escrow payment gone AWOL

Investigation still pending, heat on the respective bank / Lawyer firm to provide paper trail.

e) KOBOLD

Not sure whether Nigel was playing coy, but if they were the real deal, they would of contacted AVZ for permission to look in the core library / data room etc , site visit, but they did not, so its a non event for now, not sure what the situation is there to be honest

f) Mining or For sale ?

I asked Nigel the direct question, his opinion ,to achieve the best valuation, is to give suitors the impression you are going to mine, so first things first, now Locke funding is secured, first action is to get in touch with DRC govt and get them to finally get serious about negotiating a deal that would give AVZ the ML for PR13359 along with the Mpiana hydropower rights and then ultimately put it up for tender.

MOU discussions were organised prior some months ago , but AVZ were fucked around and it never eventuated as word got around that it wasnt going to be necessary due to AVZ parlous financial position..........

Believe it or not AVZ BOD still maintain that in general they still have a good relationship with the DRC govt, its just that there a few corrupt cunts that have done a hatchet job on them , the architect in Yianni mind is this dude.....

View attachment 73559

but there is a number of members of government that are sympathetic to AVZ cause and just wants a resolution.

Make of that as you will.

In any case, if ML is obtained with Mpiana package in tow, a evaluation could be anything from 2.5b - 10b depending on the lithium cycle./ pricing etc.

g) Mpiana Hydropower plant

https://africa-energy-portal.org/news/drc-inks-deal-refurbish-old-mpiana-mwanga-hydropower-station

I talked to Nigel one on one about this pivotal asset given Zijin has taken illegal posession and has commenced refurb.

He told me that lawyers advised Zijin not to trespass and take possession as AVZ had the legal rights, but Zijin told them to fuck off and did it anyway.

The situation is very simple, any negotiation regards to ML includes the rights to Mpiana and any illegal work done by Zijin would be remunerated back to them and then they would be told to fuck off

Its my impression that the DRC dont want to be beholden to China alone, they do want western investment, so maybe the tide is turning Saudi Arabia style if you get my drift..........

Well, i have dribbled long enuff, time for bed.

Cheers @EarleofBarrow , @Scoota30 , @Jazz , @Golden Years for a good catchup and chat, very illuminating to say the least and a big thankyou to the the main man DEBOSS a ripper bloke and the driving force behind AVZ BOD.

He wants to cut a deal bad, he wants to be the deal maker, but as John Clarke said to me eloquantly, he hasnt got a hope cause he doesnt know the lay of the land like he does, cant speak french nor does he have the credential like he has with over 25yr of experience working in Africa.

I View attachment 73565

Its a different world over there and Johns resume is impressive, plus DLA piper are no mugs either, i am sure the entire BOD collective will cut the best deal for us long suffering shareholders..........just a matter of when ?


imo

 

[grassseeds]

Hi all, particularly those that attended the AGM ( especially those that came from Interstate ), the pre discussion and get together with Yianni and the after AGM discussions with Directors.

I sensed that our Directors ( currently not being paid ) have a degree of mental tiredness due to the constant battle with corrupt officials and trying to keep AVZ afloat for all shareholders. Graeme Johnston in particular (who has a gaol sentence in DRC hanging over his head) must be very concerned about the constant pressure of both his and AVZ's situation.

As I see it, we may still have a couple of years to get the mess sorted out, and/or many battles to keep the corrupt carpet baggers from stealing Manono. If you look at the options to finalise a satisfactory result, AVZ personnel have to negotiate with many of these corrupt people. The number of possible alternative outcomes may become quite large. I hope they get some more support to help crank out the numbers and solutions on all possible options.

My next action.

I propose to send a personal vote of thanks to Yianni for getting off his arse, spending his time trying to help all shareholders and exposing himself to possible legal challengers.

I also propose to send a personal vote of thanks to all the Directors for their continuing (currently unpaid) work trying to get a deal for all shareholders. I also suggest the Directors pass on to the Legal team and any other supporting organization my vote of thanks.

Anyone who agrees with my thinking I hope you also feel that by giving your thanks to Yianni and support to our Board this will help them appreciate the retail shareholders and spur them on to get the job done over the next difficult period.

 

[BEISHA]

Hi all, particularly those that attended the AGM ( especially those that came from Interstate ), the pre discussion and get together with Yianni and the after AGM discussions with Directors.

I sensed that our Directors ( currently not being paid ) have a degree of mental tiredness due to the constant battle with corrupt officials and trying to keep AVZ afloat for all shareholders. Graeme Johnston in particular (who has a gaol sentence in DRC hanging over his head) must be very concerned about the constant pressure of both his and AVZ's situation.

As I see it, we may still have a couple of years to get the mess sorted out, and/or many battles to keep the corrupt carpet baggers from stealing Manono. If you look at the options to finalise a satisfactory result, AVZ personnel have to negotiate with many of these corrupt people. The number of possible alternative outcomes may become quite large. I hope they get some more support to help crank out the numbers and solutions on all possible options.

My next action.

I propose to send a personal vote of thanks to Yianni for getting off his arse, spending his time trying to help all shareholders and exposing himself to possible legal challengers.

I also propose to send a personal vote of thanks to all the Directors for their continuing (currently unpaid) work trying to get a deal for all shareholders. I also suggest the Directors pass on to the Legal team and any other supporting organization my vote of thanks.

Anyone who agrees with my thinking I hope you also feel that by giving your thanks to Yianni and support to our Board this will help them appreciate the retail shareholders and spur them on to get the job done over the next difficult period.

I love the sentiment, i thanked Yianni and the BOD for their ongoing hard work to achieve the best result they can for us long suffering holders at the AGM. I know for a fact the BOD are jaded from all this corrupt shit that never abates, I also know that Nigel has had to resort to selling private assets to keep the lights on too apart from not pulling in any wages for a number of months.......but his body language is alot more positive than it was last year and Yianni is always positive and a ripper bloke.

Where i do disagree with you is the time frame to get this mess sorted, no way its going to take another 2 years, like Nigel said, there is a minority of scum in the DRC govt that needs to be addressed and it may come to a pass that FT removes them from the equation.

Also, we are on the cusp of another lithium boom, all the signs point to a bottoming of the price curve and i am sure DRC govt doesnt want to see RD becoming a stranded asset and missing out on a potential $450m p/a in taxes / royalties for any longer than is deemed necessary.

CDL is about 4 yrs away from production at best, if a deal could be agreed upon ASAP, RD could be in production in around 18 months , potentially in the right time frame for massive profits as price would be in the ball park of $1000+ p/t by then me thinks.

One needs to remember , Manono strip ratio is 1: 1, AISC would be very low, lowest of all the hard rock plays out there by far.

Excellent profits would be made , thousands of jobs created and ultimately, a better standard of living within the community would have been attained if the brown bag mentality was erased.

We live in hope that FT gets a brain and develops into a true leader not a follower like Albanese.

imo

 

[Doc]

Thanks again grassseeds. Why would Graeme Johnson be very concerned about a BS jail sentence hanging over his head in the DRC ? He's not in the DRC and probably couldn't give a rats arse if never steps foot in the sh1t hole again ,and, the international court will prove it's a load of bollocks.

I thought the jail sentence was revoked and just a big fine remained.
Could be wrong.

 

[wombat74]

I thought the jail sentence was revoked and just a big fine remained.
Could be wrong.

You maybe right , but I think it was his sentence got reduced from 50years to 25years . Just the fact we can now crucify these cunts at the ICSID is brilliant .

 

[Goldenboy]

Actually never been.
Maybe we could all go for a few days when this shit is over.

Clearly the fishing is shit there cos the cunt spends all day every day on his computer posting on a stock he doesn’t own …. Hello superHooter….

 

[Pokok]

Love all the discussion but really just show me my money i dont have 1 year 2 years even 6 months I want it now i'm tired of waiting

 

[sf120]

5 board members attended: John Clarke (chair), Nigel, Graeme, Rhett, Ben.

About 50 people attended, no or very few suits.

Pretty calm/quiet atmosphere.

One of the MMGA lawyers (the one in the far left in that recently posted photo) was there in casual dress. I didn't spot Carrick, Ludbrook or Hjulich or those other two big lawyers from last time.

2-3 DLA Piper folks sat in the front row but not on stage. Their main guy was the same one from last AGM I think. He was holding a big wad of answers, kind of like last time but the board didn't have them, and Nigel was speaking freely rather than reading responses.

Start of meeting
--------------------------
JC mumbled and bumbled his way through the initial proceedings and gave a brief initial address:
- Continuing to pursue confirmation of the 13359 title.
- Locke funding secured
- Audit in progress and will be made available
- Special thanks to DLAPiper for their work

Voting
-----------
Both resolutions (Rhett Brans and Salome Sijaona) passed with about same number of votes for each - around 650M for, 50M against.

Business concluded

Overview & update (NF)
--------------------------------------
- Won't be talking technical stuff, just legal & arbitration
- Locke finding gets us what we need to get through arbitration
- DLA Piper have done the budget for the legal campaign
- Money covers arbitration legal cost, experts fees, etc
- Acknowledged that it was a tough deal but explained that Locke want a decent return for their risk but maintained that it's a small price for AVZ to pay when compared to the potential return
- Exact repayment amount depends on level of draw down and time (there's some kind of time multiplier)
- Board's objective is to get the value out ASAP (NF referred to this several times throughout)
- 60m shares from ATM will go to Locke ASAP
- ICSID: we're in the box seat and have been getting minor wins
- ICC (Dathcom JV): hearing next week; have been winning 99% of matters so far
- ICC (Jin Cheng): pushing hard
- ICC (Dathomir 15%): has been movement recently; pushing hard; Locke funding gives us more' bump'

Expressed desire to talk about geology. "The deposit is still there."

Summarised with the need to get the funding and maximise the return through whatever avenue will most likely deliver value to shareholders.

Questions
----------------

When can we expect to re list?
- lot of legal action to go before that
- expects legal proceedings to end 2026/2027 (I was a bit surprised by the 27 bit, given Locke conditions)
- could also play out with DLA Piper enforcing penalties
- or could get the licence
- it will be 6-12 months at least (I didn't really follow this answer, seemed all over the place)

Have there been any off market transfers of shares?
- have seen some go through
- not large amounts
- appears to be same entity transferring to itself(?)

What is the current valuation of the asset?
-[slight exasperation from NF] anywhere from $2.5 - 10B (unclear if that was USD)

What is our strategy: mining or takeover?
- "let me put the same question to you?"
[when pressed NF continued]
- Not worried about Zijin, only a small part of government is in with Zijin
- talk of a bad relationship with the government is rubbish
- if we put this into production it's going to be another 18 months of waiting (NF's tone seemed to be "is that what you really want?")
- JC interjected at this point and said in his opinion, focusing on building the mine would deliver best value (interesting difference of opinion, expressed openly; this was the only time any of the other board spoke during Q&A I think)

Status of the 20m escrow account?
- AVZ has filed a complaint
- They have no access to the account
- Status of account is unknown

Kobold's visit to Manono?
- Done without AVZ's permission
- No-one accessed AVZ's core samples
- They weren't weren't with us
- They weren't on our site

How is the relationship with the DRC government?
- it's not all of the DRC government making trouble
- MoM has been misled; with the funding it will be clear that AVZ isn't falling over
- Funding means we have a bigger stick
- the president now has a problem: either AVZ litigates or Zijin does (implication here seemed to be 'negotiate')
- AVZ's remaining portion of the subdivided 13359 holds 95% of the DFS value with a life of 50-100years
- MoM must now come to the table and talk

What is the company valuation now?
- can't put a value on it right now

ICSID outstanding payment?
- Neither side has paid
- AVZ can now sort it out ASAP with Locke funds

Travel to DRC
(I thought both NF and BC looked a bit uncomfortable/sheepish)
- not as often as we'd like to
- needed to save money
- visited "about twice" in 2024

Status of local Fat Tail case ?
- still in discovery

What is the overall objective of the ICSID action?
- we'll show the DRC we're not going away; aim is to negotiate
- otherwise will enforce penalties; we have an expert in NYC preparing for this avenue
- expect a domino effect with the various cases

Can we be confident of working in the DRC if we get the PE?
- If government has the confidence to grant us the PE they will be confident of working with us
- tax and community benefits
- it's only a small obstructive group working against us

Are we looking at raising further funds?
- yes
- if you want to contribute, contact AVZ admin and they will send paperwork

Is the US government aware of the situation?
- yes. Kamala Harris in particular
- Ambassador and a "group in Texas" (huh?) are also onto it

What about Australian government?
- "I'm not going to answer that one"
- they're ambivalent
- joked about the WA government's assistance for lithium miners: where's ours?

End of meeting

I was left with the distinct impression that Nigel is looking for a quick end to this in a way that provides a decent return to shareholders. It was a recurring theme; those references were peppered throughout. I don't think he wants to go mining.

great summary! thanks for sharing

 

[UtterMoron]

We're finally going to war, I've about an 18 month buffer on my mortgage before I need to defer. Hopefully something fruitful comes of this and we start trading into 2026 at the latest

 

[sf120]

whilst there is alot of positivitity with Locke, i also feel we arent being informed as to why it took a year. 5 mil in working capital as the dealy breaker?

I think there is more to it and i worry if avz has dirt on their hands in any way.

Alternatively they were playing a "hope it resolves" before card and it failed.

But ultimately the path avz is going on is not the only path, they absolutely need to engage aus government into action. They can do this through the shareholder base engaging social media etc, but they choose not to leverage what is a passionate and committed shareholder base.

If avz does get a buy-out, you can rest assured FIRB will jump in at that point and likely create complexity.

Our government is a reactive government, AVZ needs to do more here... Where is the EU? The US is hopeful. we are talking about EV supply chain and it fall straight into what is a key geopolitical conversation right now.. AVZ needs to up their media campaign

 

[pow4ade]

Clearly the fishing is shit there cos the cunt spends all day every day on his computer posting on a stock he doesn’t own …. Hello superHooter….

Maybe check out the annual UFO festival, looks like a hoot:

 

[Mr Inappropriate]

Has the tide turned enough that AVZ are no longer legally bound to the CATH Strategic Partnership and now can negotiate with Western or Middle East?
Considering that CATH voted against us .
Cheers

We only needed them if we were going to mine in the ‘before’ days. They can also fuck right off.

 

[Bin59]

A press briefing was held last week prior to Biden’s visit to Angola from 2-4 December, it states there will be a number of announcements made during his visit, including some around infrastructure for the Lobito Corridor.

Technical Difficulties

Also a huge thanks to everyone who shared their thoughts and notes from the AGM

 

[Mr Inappropriate]

20%? Isn't it a $20mil break free ?

Only if the agreement is current at the time at which we make said break.

if it expires and is not extended, no break fee is applicable.

That’s my read on it, at least.

 

[wombat74]

AVZ Minerals Secures $15 Million Litigation Funding for DRC Disputes - Copperbelt Katanga Mining

AVZ Minerals Limited, a lithium mining company, has secured $15 million in litigation funding from Locke Capital II to support its legal efforts related to

copperbeltkatangamining.com

 

[PutUsernameHere]

Been outside of reception over the weekend, so catching up on everyone's input now. Just throwing in my thanks to the feedback posted from those that attended the AGM and relayed it here. There's a much more positive tone on the back of securing the funding from Locke, and hopefully renewed energy on the board to really start driving this home via legal proceedings. I want my fucking money, but I'm not willing to accept some piss-ant offer either. I want to see a justified ROI from all the bullshit we've been put through from Chyna, corrupt cunts in the DRC, and the domestic fucknuts that have been actively working to undermine the company. Still a long road ahead, but I feel better about it all than I did a few days ago.

 

[Frank]

AVZ Minerals Secures $15 Million Litigation Funding for DRC Disputes - Copperbelt Katanga Mining

AVZ Minerals Limited, a lithium mining company, has secured $15 million in litigation funding from Locke Capital II to support its legal efforts related to

copperbeltkatangamining.com

AVZ Minerals Secures $15 Million Litigation Funding for DRC Disputes​

AVZ Minerals Limited, a lithium mining company, has secured $15 million in litigation funding from Locke Capital II to support its legal efforts related to disputes over its mining projects, including the Manono project in the Democratic Republic of Congo (DRC).

AVZ CEO Nigel Ferguson expressed satisfaction with the agreement, stating on November 28: “Locke, a global litigation funder with a strong track record, has approved funding for AVZ, validating our strong position in these disputes and paving the way for a successful resolution.”

The company plans to draw an initial tranche of funds in December 2024, emphasizing its commitment to defending its legal rights for the benefit of shareholders and stakeholders, while advancing the Manono project.

The funding will exclusively cover legal fees for multiple arbitration proceedings, including:

• Three ICC cases involving Congolaise d’Exploitation Minière and Jin Cheng Mining Company.
• Two ICC cases involving Dathomir Mining Resources SARLU.
• ICSID arbitration against the DRC.
• It will also support other related disputes involving AVZ Minerals and its affiliates.

This funding arrangement allows AVZ to pursue critical legal battles without diverting resources from operational activities, underscoring the challenges of safeguarding interests in the lithium sector—key to the global energy transition.

 

[hedrox]

Me Christian Lukusa, bouc émissaire d'AVZ : Où sont passés les 20 millions de dollars ? - MINES.CD - Premier média congolais du secteur minier

Avant 2024, Momentum Attorneys & Advisors était un cabinet de renom en RDC. Son avocat Me Christian Lukusa incarnait la défense des intérêts d’AVZ et de DATHCOM, apparaissant régulièrement sur le devant de la scène : que ce soit devant le parquet et les tribunaux, auprès des autorités...

mines.cd

 

[Vanfeder]

Thanks to everyone who reported from the AGM. I am well aware about general sentiment, that many of us want this saga has eventully a (happy) ending. My point of concern is the timing with lithium prices at the very low. Just had to observe the take over of Arcadium Lithium. I bought into Livent few years ago (basicall during the boom), then it merged with Allkem building Arcadium and now the company goes to Rio Tinto. With premium of rd. 90% on top of current share price i am still 30% in red. And Rio Tinto states on their website straight away, that they consider current market with low prices and low valuations being a favourable moment for acquisitions.