Whilst negations are underway I see the issue is that Kobold are fixated with the $240mil number for 24% partnership deal we struck with CATL back in 2021.
As everyone knows the deal then and what we are seeking are polar different in every aspect. CATL and AVZ were to become partners and build and mine together, where-as the deal between AVZ and Kobold is for them to purchase all shareholders shares, we move on they mine with a partner and then operate the largest lithium mine on the planet.
Now unless Kobold seek a suitable partner with significant cash reserves (example: RIO), I cannot see how Kobold can close this deal out in the short term.
Right now I see the options as the following:
1) Kobold provide an upfront offer to shareholders at 35-60US cents + Royalties and a multi-year special dividend based on shareholder holding.
2) Kobold offer a higher price 70US cents - $1.20US if they can secure a strategic partner to build and operate Manono or they secure funding in the coming 6 months through a private equity raise. Remember Kobold eventually want to be listed - Given the large backers of Kobold I sure it will eventually list at a premium.
3) CATL / CATH purchase an increased stake within AVZ and become majority shareholder. They become the voice piece with the DRC govt, they also own the Mining Licence, they build the mine. AVZ re-lists on either ASX or US exchange.
4) We continue on the ISCID journey for the coming few years and lock up Manono.
Again just my thoughts.
