AVZ Discussion 2022
- Thread starter GazDix
- Start date
just to clarify, I'm stating avz has to say their intent is to go mining.
they're applying/wanting to recover the mining license which obviously allows them to go mining. It would be a bad look to be stating they want the mining lease so they can sell the asset. If it was avz's stated intent to sell if off on the back of this announcement, then drc may start asking themselves why grant the mining lease to a company that has no intention of going mining. all speculation on my part of course.
Ashlee
Regular
Jason I don’t agree with you.
The initial collateral backing anyway. We don't know what the security backing is going to have to be after this first tranche is completed. They'll probably have solid leverage to push for something onerous. But that's probably a year down the line, lots of time for positive developments or momentum in that period.
Like Ganfeng TO LLL, let's hope this time will be different.
Im rather the stock remain delist for another year until the lithium pricing bounce back.
DiscoDanNZ
Regular
Attachments
Scoota30
Regular
The KEY kicker in this announcement for me is the lithium hydroxide plant, this was the golden goose that would help unlock richer downstream margins.
IMO if we can retain Majority ownership of Manono while securing 49% ownership on the Hydroxide plant, I would argue we are almost better off with this latest JV agreement than CATH are??? Interested to hear thoughts?
This would be a perfect way to make sure every party ends up getting a "slice of the pie" and can help the DRC save face (Apart from Dathomir - they can go get fucked because Cong genuinely doesn't have a leg to stand on there)
AVZI will be granted an option to purchase up to 49% of CATH's interest in a lithium hydroxide or carbonate conversion plant (LHC Plant) to be built by CATH.
IMO if we can retain Majority ownership of Manono while securing 49% ownership on the Hydroxide plant, I would argue we are almost better off with this latest JV agreement than CATH are??? Interested to hear thoughts?
This would be a perfect way to make sure every party ends up getting a "slice of the pie" and can help the DRC save face (Apart from Dathomir - they can go get fucked because Cong genuinely doesn't have a leg to stand on there)
AVZI will be granted an option to purchase up to 49% of CATH's interest in a lithium hydroxide or carbonate conversion plant (LHC Plant) to be built by CATH.
Xerof
Flaming 1967
So shit stain is crowing on about dealing with the Chinese....we have always had a deal with the Chinese - seemingly the 'right type' who are prepared to come into our room thought the front door, not the 'devious cunts' sliming in the back door - you know, the ones paying him 50 cents a pop for rubbish spamming
This is a great piece of negotiation. We have admittedly given up 1.5m per 1%; not too bad given the circumstances, but it now sits as an interest outside the direct participation in DATHCOM (no mention of whether CATH gets a board seat on GLH or DATHCOM) so there's no danger of AVZ losing control of DATHCOM, even if it were to reduce back to 60%
IMO, the $259.25 buys them 30.5% of GLH, end of story, no adjustments if anything happens with the 75% in DATHCOM, as was the original deal. We will likely use some of that cash, after paying off the Pre-completion funding, to buy out the remaining 15% from COMINIERE
CATH willing to build upstream plant is fantastic, and should be a major incentive for DRC to co-operate in sorting this out
Might have to pay Locke their $1m for the inconvenience - so be it
Fees are paid to kick off the ICC and ICSID - lets get on with it asap and tidy up all these loose ends
Possibly need some clarity around "project area covered by 13359" statement - I would think they want the whole thing back but it could be read as just Roche
Great day for AVZ shareholders IMO, and I got the quinella with an EPA approval announced for VRX today too!!
This is a great piece of negotiation. We have admittedly given up 1.5m per 1%; not too bad given the circumstances, but it now sits as an interest outside the direct participation in DATHCOM (no mention of whether CATH gets a board seat on GLH or DATHCOM) so there's no danger of AVZ losing control of DATHCOM, even if it were to reduce back to 60%
IMO, the $259.25 buys them 30.5% of GLH, end of story, no adjustments if anything happens with the 75% in DATHCOM, as was the original deal. We will likely use some of that cash, after paying off the Pre-completion funding, to buy out the remaining 15% from COMINIERE
CATH willing to build upstream plant is fantastic, and should be a major incentive for DRC to co-operate in sorting this out
Might have to pay Locke their $1m for the inconvenience - so be it
Fees are paid to kick off the ICC and ICSID - lets get on with it asap and tidy up all these loose ends
Possibly need some clarity around "project area covered by 13359" statement - I would think they want the whole thing back but it could be read as just Roche
Great day for AVZ shareholders IMO, and I got the quinella with an EPA approval announced for VRX today too!!
Hodlandwin69
Regular
It's 30.5% of Manono via indirect ownership through GLH. It's more than 30.5% of GLH as it needs to be 30.5% of the Manono project imo
Hodlandwin69
Regular
Well the math would suggest that
TheCount
Regular
You're starting to talk like Shane.....
Worth pointing out because I don't think its been said yet:
This probably explains the delay on paying arbitration fees.
Also, it think i initially underestimated the impact of having a hydroxide plant. This is great for us, but also a big deal for DRC. One more argument for going with AVZ / CATH and telling Zejin to fk off
This probably explains the delay on paying arbitration fees.
Also, it think i initially underestimated the impact of having a hydroxide plant. This is great for us, but also a big deal for DRC. One more argument for going with AVZ / CATH and telling Zejin to fk off
Apologies. I'm definitely cautiously optimistic. But we've been burnt many times, even with our apparent saviors CATH voting against the BOD. I just think there needs some more thinking on this "deal". ME questioning certain elements isn't meant to rain on the parade, I'm just very wary. The Chinese will continue to play games to undermine ownership. It's their Schtick. I think AVZ need tom hedge bets as best as they can.
"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."
The announcement is not saying CATH will acquire 30.5% indirect interest of Dathcom but saying indirect 30.5% interest in the Manono Project, through the acquisition of shares in GLH.
GLH only hold 75% of Dathcom (or 60% if we don't get the 15%) till now.
I think we need clarification from company regarding this.
Also if it is 30.5% of GLH, then if avz ever acquire comminire 15% then CATH would need to contribute their share if they need to maintain this 30.5%.
RHyNO
Regular
Certainly feels like a fucktonne of work being done by the gang in relation to setting this up. Certainly doing their job to turn my scepticism into absolute support. This is a great move by management. Wrapping our intentions in with a battery producer out of China. One we already have a solid relationship with none the less. Good work Nigel!
Similar threads
