AVZ Discussion 2022

[JNRB]

I know nothing is done until the ink is dry but people seem to be letting their minds run away a bit with the current status of the deal with Kobold.

1. The statement from AVZ & Kobold doesn't talk about 'progressing' or 'advancing' discussions on a deal. The wording is "working with all possible speed to conclude the commercial agreement".

2. Nigel would not have signed such a joint statement unless there was already a basic value framework in place that was acceptable.

This is not speculation or wishful thinking anymore, nor is it something we should be unnecessarily doubting. Yes the company has clarified that the agreement so far is still 'non-binding' but they also signed the statement saying they're working with speed to conclude it.

So our default position now is the deal with Kobold is happening, until something changes that disrupts that. Sure there are still hurdles, but I for one don't think Kobold haggling over the price is going to be one of them. They are buying a global geopolitically important resource that is so big it will be able to influence market pricing for its resource - not buying a second-hand toaster at a flea market.

They know what they're getting and they know what the value is*,
and so do we.


(*$12 )

 

[Doc]

Why have so many posts disappeared??

 

[Strongman]

Seems we got a little tit for tat war goin on here.

 

[Mute22]

DR Congo eyes US minerals deal tied to peace in rebel-hit east by end of June

Another round of negotiations in Washington expected next week

www.ft.com

DR Congo eyes US minerals deal tied to peace in rebel-hit east by end of June
William Wallis and Camilla Hodgson in London

Published AN HOUR AGO

Officials from the Democratic Republic of Congo are optimistic they can reach a deal with Washington next month to secure US investment in critical minerals alongside support to end a Rwandan-backed rebellion in the country’s east.

The scope of Kinshasa’s negotiations with Washington is hugely ambitious, and combines giving US companies access to lithium, cobalt and coltan deposits in return for investment in infrastructure and mines, with efforts to draw a line under 30 years of conflict in regions bordering Rwanda.

Two people close to the negotiations said an investment deal with the US and separate peace deal with Rwanda were possible “by the end of June”. But potential stumbling blocks remain substantial.

The US hopes to regain a foothold in a mining sector that has been dominated by China since Beijing reached its own multibillion dollar mines-for-infrastructure deal with Kinshasa in 2008.

The DR Congo’s mining minister Kizito Pakabomba told the Financial Times that an agreement with the US would help “diversify our partnerships”, reducing the country’s dependence on China for the exploitation of its vast mineral riches.

A deal could also lay the foundations for co-operation between the DR Congo and its neighbours including Rwanda, in the export and processing of metals.

But in a sign of tensions underlying the talks, DR Congo officials said there could be no question of sanctioning of Rwandan involvement in Congo’s minerals trade until M23 rebels retreated from a swath of territory they have occupied since January, and the Rwandan troops allegedly supporting them withdraw across the border.

Rwanda has long been accused of using security concerns across its border as a smokescreen for the plunder of Congolese resources including coltan used in mobile phones, and gold. Rwandan president Paul Kagame’s government denies supporting the M23 rebels, while claiming that his army is defending itself against hostile forces.

People close to the talks said that Kigali saw the negotiations as an opportunity to legitimise access to Congolese resources and attract US investment to expand its own existing metals processing. But before considering any such prospect, Kinshasa wants first to regain control of territory, including the cities of Goma and Bukavu, that it has lost.

“It would be very difficult for us to accept that particularly because there are still Rwandan troops in the [DR Congo] and there are still M23 troops committing abuses,” said a senior Congolese official who asked not to be named.

Yolande Makolo, Kagame’s spokesperson, said “Rwanda’s defensive measures along” the border, “are necessary as long as threats and the cause of insecurity in the DRC persists”. More important than the date of any peace agreement, she said, was for it to “deal with the root causes and be long-lasting”.

But Makolo added that Rwanda was “optimistic” about the approach the administration of US President Donald Trump was taking.

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“Economic collaboration between the countries of the region that leverages our respective strengths, and benefits all our people is what we ourselves have always envisioned for this part of the continent. This is why we are committed to this process,” she said.

A person close to the talks said Massad Boulos, Trump’s Africa envoy and father-in-law to his daughter Tiffany, had called for another round of negotiations in Washington next week to iron out some of the differences.

Boulos, who met Congolese President Félix Tshisekedi in Kinshasa and Kagame in Kigali in April, said last week he had provided both parties with the first draft of a peace agreement.

A spokesperson for the US State Department said: “Both participants have committed to work to find peaceful resolutions to the issues driving the conflict in eastern DRC, and to introduce greater transparency to natural resource supply chains. Respect for each country’s territorial integrity is at the centre of the process.”

 

[Mute22]

If you have been wondering why Felix NEEDS US weapons & military intelligence support:

 

[Stockinvesting]

FWIW. IMO.

The ICSID previously told both parties the matter would proceed on 1 June. Enough, is enough

No adjournment (suspension) would have been granted, let alone requested, if a deal wasn't very, very close to being agreed upon. The fact AVZ themselves asked for/agreed to the delay speaks volumes.

Note the very short time frame of the adjournment. It's close. Very close.

Awaiting Lawyers' proof reading, minor changes to contracts, gives and takes, final wording........

Deal's done.

 

[M.Bison]

A bunch of my posts today seem to have been deleted...

Anyone know what's going on?

Spooky

 

[Flexi]

If a deal has been done, than i would be expecting AVZ board would be utilising this waiting time to work on how the funds will be disbursed to AVZ shareholders expeditiously. Every thing should be sorted now and ready to go after the announcement.

 

[Spikerama]

Hang on I was just about to reply to that! FFS.

 

[Jongo]

If a deal is done >= $2 per share, Nigel needs to invite us all to a party.

 

[David Krappenschitz]

If a deal has been done, than i would be expecting AVZ board would be utilising this waiting time to work on how the funds will be disbursed to AVZ shareholders expeditiously. Every thing should be sorted now and ready to go after the announcement.

And in a way that allows SHs to get the CGT discount

 

[j.l]

If a deal is done >= $2 per share, Nigel needs to invite us all to a party.

And if it's <$2, we all invite Nigel to a 'party'?

 

[Javman]

From the crapa.​

AVZ moves step closer to great escape from the DRC​

Brad Thompson

The disputed AVZ Minerals lithium project in the DRC.


Gift this article0 Comments
42 minutes ago

Perth-based AVZ Minerals and the Democratic Republic of Congo have suspended their bitter legal battle over a giant lithium project as the US closes in on a critical minerals pact with the troubled African nation.
The US pushed AVZ and the DRC to find common ground as part of its desire for the lithium prize to end up in the hands of an American company – and not in the clutches of Chinese interests.
The suspension of legal hostilities takes AVZ a big step closer to having its permits over the southern portion of the Manono Project returned so it can be on-sold to California-based KoBold, a company whose backers include Bill Gates and Jeff Bezos.
AVZ and the DRC’s state-owned mining company hit pause on legal action in the International Court of Arbitration of the International Chamber of Commerce until June 23 in a sign of goodwill, and will negotiate on the return of the Manono permit.
The prospect of a peace deal sometime in the next four weeks also suggests a timeline for a deal between AVZ and KoBold, who are in negotiations about the sale price.
The market valued AVZ as high as $4.6bn in 2022 amid a lithium boom and excitement around Manono that drew in more than 21,000 investors.
The company’s stocks tumbled and it was eventually de-listed and hit with disputed corruption allegations after losing control of the massive hard rock deposit that has been likened to the world-leading Greenbushes lithium mine in Western Australia.

The disputed AVZ Minerals lithium project in the DRC.
Investors now appear well on track to receive some return based on the thaw in relations between AVZ and DRC officials, and lobbying that garnered US support for Nigel Ferguson-led AVZ.
The Australian first reported in March that the Trump administration was poised to insist control of the southern part of Manono be handed back to AVZ, in a move that risked provoking a backlash from China.
The Trump administration and the DRC are now close to signing a critical minerals pact after DRC President Felix Tshisekedi sought US protection from Rwanda-backed M23 rebels that had overrun parts of his country.
The US State Department published a declaration of principles between DRC and Rwanda that provides a framework for peace, and AVZ and KoBold confirmed they were working a deal on Manono since The Australian’s exclusive report.
The United Nations estimates more than 71,000 people fleeing violence in the east of the DRC have crossed the border into Burundi since January.
The US wants AVZ and the DRC to drop any legal action before a sale, with the ceasefire in their arbitration case pointing to a breakthrough on that front. It appears Chinese mining heavyweight Zijin will be left alone to develop the northern half of Manono.
However, AVZ will have to talk with Chinese battery-maker CATL, which listed on the Hong Kong Stock Exchange last week, about the sale to KoBold. A CATL subsidiary owns part of AVZ and, through a deal revised in January, helped fund the legal fight with the DRC.
It was reported on March 30 that AVZ could on-sell the Manono project to KoBold for up to $US1.5bn.
However, the sale price remains unclear and complicated by geopolitics, further weakness in global lithium markets and the possibility the DRC could ignore any adverse ruling if the international arbitration case were to continue.

 

[Spikerama]

And if it's <$2, we all invite Nigel to a 'party'?

Yeah, a Pinata Party. Where he's the pinata.

 

[Mr Clean]

From the crapa.​

AVZ moves step closer to great escape from the DRC​

Brad Thompson

The disputed AVZ Minerals lithium project in the DRC.


Gift this article0 Comments
42 minutes ago

Perth-based AVZ Minerals and the Democratic Republic of Congo have suspended their bitter legal battle over a giant lithium project as the US closes in on a critical minerals pact with the troubled African nation.
The US pushed AVZ and the DRC to find common ground as part of its desire for the lithium prize to end up in the hands of an American company – and not in the clutches of Chinese interests.
The suspension of legal hostilities takes AVZ a big step closer to having its permits over the southern portion of the Manono Project returned so it can be on-sold to California-based KoBold, a company whose backers include Bill Gates and Jeff Bezos.
AVZ and the DRC’s state-owned mining company hit pause on legal action in the International Court of Arbitration of the International Chamber of Commerce until June 23 in a sign of goodwill, and will negotiate on the return of the Manono permit.
The prospect of a peace deal sometime in the next four weeks also suggests a timeline for a deal between AVZ and KoBold, who are in negotiations about the sale price.
The market valued AVZ as high as $4.6bn in 2022 amid a lithium boom and excitement around Manono that drew in more than 21,000 investors.
The company’s stocks tumbled and it was eventually de-listed and hit with disputed corruption allegations after losing control of the massive hard rock deposit that has been likened to the world-leading Greenbushes lithium mine in Western Australia.

The disputed AVZ Minerals lithium project in the DRC.
Investors now appear well on track to receive some return based on the thaw in relations between AVZ and DRC officials, and lobbying that garnered US support for Nigel Ferguson-led AVZ.
The Australian first reported in March that the Trump administration was poised to insist control of the southern part of Manono be handed back to AVZ, in a move that risked provoking a backlash from China.
The Trump administration and the DRC are now close to signing a critical minerals pact after DRC President Felix Tshisekedi sought US protection from Rwanda-backed M23 rebels that had overrun parts of his country.
The US State Department published a declaration of principles between DRC and Rwanda that provides a framework for peace, and AVZ and KoBold confirmed they were working a deal on Manono since The Australian’s exclusive report.
The United Nations estimates more than 71,000 people fleeing violence in the east of the DRC have crossed the border into Burundi since January.
The US wants AVZ and the DRC to drop any legal action before a sale, with the ceasefire in their arbitration case pointing to a breakthrough on that front. It appears Chinese mining heavyweight Zijin will be left alone to develop the northern half of Manono.
However, AVZ will have to talk with Chinese battery-maker CATL, which listed on the Hong Kong Stock Exchange last week, about the sale to KoBold. A CATL subsidiary owns part of AVZ and, through a deal revised in January, helped fund the legal fight with the DRC.
It was reported on March 30 that AVZ could on-sell the Manono project to KoBold for up to $US1.5bn.
However, the sale price remains unclear and complicated by geopolitics, further weakness in global lithium markets and the possibility the DRC could ignore any adverse ruling if the international arbitration case were to continue.

Surely it’s higher than the $1.5 billion US number the Australian put out on March 30. Can anyone speculate how they just simply came up with that number? A credible leak or a journalist guess?

You would hope Nigel has suspended arbitration with a much better deal locked in than 1.5 billion US. It’s merely 15% of the compensation / damages claim we we seeking in the courts

 

[Misfits]

Looks like there could be an announcement tomorrow

 

[Mining8]

Nice to see you back mate, always liked your posts back in the elysian days when AVZ HC threads were at its finest........until it was not.

Thanks Beisha,

Been a long road, and a great strength that AVZ management under Nigel and its shareholders have fought tooth and nail against unbelievable odds.

Was thinking whoever buys us out are getting an unbelievable resource. China has flooded the market with absolute crap lepidolite:

where it costs over double to extract the lithium compared to our prime spodumene resource:

1. the motherload

2. at and near surface, homogenous, of the highest grade with minimal impurities so the most economic to mine and easiest to extract battery grade lithium with minimum beneficiation.

3. They don’t have to spend YEARS exploring to find a resource and obtaining a DFS with a mine/plant design etc. and then exploring DOES NOT GUARANTEE the motherload.

Anyway seems we are close to a deal. Fingers and toes crossed.

Cheers, M8