Few Points from the AGM, page-23

Thank you to @absfdr344 & @Smile who have already posted their summaries of today’s AGM as I don’t need to cover the points already mentioned. Their posts were well detailed and there is only one point I disagree with, which will be obvious as you read on.

Below I have listed some of the questions I asked and the subsequent answers from Nigel as I remember them.
Q: Considering we are supposedly going mining, have you been actively looking for a new CEO who is experienced in building a mine and why hasn’t there been an appointment as yet?
A: Yes we have already interviewed a few prospective candidates and are hoping to make an appointment in January

Q: What are our 40% partners doing to secure the upgrade of the hydro plant and are they providing any funds for it?
A: No they are not providing any funds as they have a free carried interest, however  they will help us with all regulations etc. Cost will be approx. $10million

Q: Have you received any Take Over offers? If so, at what price and why were they obviously declined?
A: We cannot disclose that information

Q: Why not? Surely you can advise if you received offers that were rejected?
(Nigel went red in the face and looked at the 2 other Directors)
A: We cannot disclose that information

Q: I don’t understand why you cannot disclose this. What about an ‘off the cuff offer’ that may have been rejected? How much was an offer like that for?
A: We cannot disclose if we have received any offers at the moment

Q: Okay considering you didn’t say no, I’ll take that as a yes
A: We cannot disclose if we have received any offers at the moment.

Q: You mentioned we have $4.4million in the bank, yet your slide showed $6.5million as at 9 November? So how much do we have?
A: $4.4million. We paid approx. $2million for drilling since 9 November.

Q: Is there a plan to sell some of the extension projects to raise cash without further share dilution?
A: No. Then we would have another competitor and a smaller overall resource to sell

Q: So how long before we run out of money?
A: Well we have $4.4million in the bank and we won’t be spending any more of it on further drilling at the moment. We have received multiple offers for financing and we are hoping to have something in place whether it be with a partner or other option by Christmas.

Q: Have you asked Huayou if they intend to exercise their options in May (even at the current sp) to continue supporting the Company?
A: If they don’t exercise them they will lapse and they will lose them

Q: My question was have you asked them if they intend to exercise their options in May?
A: We believe they will exercise them and that will give the Company an additional $18million. I did mention earlier on that Huayou wanted to start mining after we drilled the first 8 holes!

Q: Is Huayou (or anyone else) in your opinion deliberately supressing the AVZ share price?
A: No

Q: Isn’t having Huayou on the Board detrimental to any OT, JV or TO negotiations?
A: No. All negotiations of this type are done by the other Board members. If there is an offer, only then would Huayou be told at a Board meeting as they need to vote. If they want to match the offer it would be okay, but if they don’t, they will be out voted. They cannot influence this vote if the majority of the board is for it as they only have one vote. We also still have an undisclosed MOU and the reason it is undisclosed is the other party insisted on privacy as they don’t want anyone else to know. They are still interested and are continuing on with their review. In the meantime, the Board is focused on developing the resource, financing it properly and on to production….. not on the cheap. Airguide has brought several other Companies to the table. Some have MOU’s and others are still evaluating. We have several entities circling and there are ongoing discussions in Beijing with some major players involved. Also at the Hong Kong 121 conference recently, Airguide organised a private meeting of 30 different entities.

When asked by another investor what Nigel thought AVZ’s greatest challenge was, Nigel responded he believed the greatest challenge is which transport route to use.

Nigel also mentioned the proposed timeline for the next 12 months which included a full feasibility study by Q2 19, engaging with off take partners (Chinese & others), locking in a logistics solution which may be a direct line to Tanzania and a few other items. All of this will be posted on the AVZ website soon.

The above is how I remember the answers to my questions to the best of my knowledge.

@absfdr344 & @Smile have covered most of the other points from the AGM. It was great to meet them and other holders.

I have been a staunch supporter of AVZ and it’s BOD since I joined HC in July 2017. Following today’s AGM, I will continue to do so. AVZ has a bright future. We have the world’s largest ‘high grade’ lithium resource which cannot be disregarded for much longer. BTW, Nigel also mentioned they did a bit of drilling at Carriere De L’est already and some chip samples were over 4% grade!!!!

Based on the answers I heard today as well as the Director’s body language, my personal opinion is that there is some sort of offer on the table (whether TO or JV - my guess is TO) and it could be in the final stage of negotiations. Please be advised that this is my personal opinion only and I could be completely incorrect

All IMO & DYOR