I thought I would share some other information from the Mining Code that should make shorters sweat.
Namely the renewal of Exploration rights as per Mining Code, and Environmental Approval that is required as part of receiving Favourable Technical Opinion.
I will paraphrase, but the renewal of Exploration rights is one of the major parts of the mining code. AVZ, Cath, Zinjin, any DRC lawyer/s would be aware of these rights/requirements. Any lawyers reviewing the DRC Mining Code would read these requirement initially. Essentially, after a period of 5 or 25years, as Decreed by The Minister of Mines another 5% of the holding company is to be ceded to the Government. In the case of AVZ it will be 25years( This info is in the fine print of the code).
I am sure a few people are going. Ohhh, another 5%. I dont really care about 25years away. But the DRC Goverment does and explain why.
Manano has a LOM greater than 25years, and as part of the environmental planning AVZ must provide with its partner/s how it is going to rehabilitate the land after completion. This is presented to the Minister of Mines. This is the mining code. It is 1 part 4 required for Favourable Technical Opinion.
If AVZ held 51%, Cath 24% and Z 15%. Who hands over the 5%. This info must have been presented to the Minister as part of the environmental Approval. Z were not part of the Application to the minister, so they were not party to the agreement that would be required to Cede 5% to the Goverment. This 5% will come from either AVZ or Cath, or a part from each. AVZ are categorical that they have had nothing to do with Z and that Z have no rights to Dathcom. Essentially the mining minister has not included them in any Mining Decree presented in the Favourable Technical Opinion, and this point is proven further with the request for arbitration by Z and most recent announcements by AVZ.
Due to the longevity of the project, you can be assured that AVZ and Cath would have agreed on these terms as part of the application to Mine.
The 15% that can be released after ML decree would be included in Proof of Financial Capability as it also relates to Environmental Approval some 40/50 years in to the future.
AVZ will be awarded the 66%, Cath 24% and DRC 10%. The details of what happens in 25years. Hmmm. Dont care ATM.
AVZ Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
