whoever wrote the article has too much time on there hands lol… then again suspension for over 7 months they must be doing something right or they would have the mining license already!!!!

—-

DRC: The COMINIERE asks for the postponement of orders renouncing PR13359 for several violations and frauds by AVZ

By

Mines

-

December 16, 2022

0

img 20221216 wa0029

COMINIERE SA, as a partner of DATHCOM and a company in the State portfolio, seized the Ministry of Mines on the 6th of the current month by its letter referenced CEM/DG/138/ckk/2022, accusing AVZ of having renounced part of PR13359 to transform it into PE13359. The COMINIERE asked the Ministry of Mines to postpone the decrees partially waiting PR No. 13359.

By brandishing the Dathcom Joint Venture Agreement, COMINIERE revealed in this letter a large number of violations by AVZ, which led to the failure to issue the PE for Dathcom.

1. The terms of the transaction for the sale of 60% of shares of DATHOMIR and AVZ Minerals have never been communicated to COMINIERE for it to exercise its right of pre-emption. This is why COMINIERE is right to question this transaction before the Authority, even until international arbitration.
2. Through the feasibility study presented to the Ministry of Mines on behalf of Dathcom, AVZ wanted to:

The overbilling at the level of construction services, the purchase price of factories for metallurgical treatment as presented in the feasibility study are more than ten times higher than the actual price.

Spoil the state's assets, by declaring that thanks to a Law Office, AVZ was able to recover the Mpiana Mwanga hydroelectric power plant. However, it is COMINIERE that owns 100% of the power plant.

Here is why COMINIERE did not give his favorable opinion to the feasibility study. Pursuant to the contractual clauses, once the feasibility study is carried out, it must obtain the favorable opinion from COMINIERE.

1. AVZ unilaterally declared the transfer to the Congolese State of 10% of the shares that came from COMINIERE SA
2. To date, Dathcom does not pay the Pas de Porte when it is its contractual obligation. AVZ maintains the confusion between the notion of doorstep and the signature bonus, claiming that it paid the doorstep.

1. Lack of transparency in fundraising operations. AVZ had to raise funds from the Australian Stock Exchange (ASX) for the joint project without communicating to the partners the amount obtained and the assignment to the project. DATHCOM's financial statements are never transmitted to the partners, and AVZ refuses to transmit them when other partners request.
2. Signing of subcontracts without the approval of the partners, these are in particular contracts signed with drilling companies and those for the supply of fuel.

AVZ has filed an application for the renunciation of part of PR13359 without the endorsement or COMINIERE SA through the General Assembly of Associates in Dathcom, thus losing a very important part of this mining heritage on which COMINIERE was very important for this project.

• Without the favorable opinion of the partners such as COMINIERE, how did the feasibility study pass the approval of the Ministry of Mines?
• Has the Ministry of Mines confirmed the transfer to the State of 10% of Dathcom's shares? Has he confirmed that the 1% deposit value Step has been paid to the public treasury?
• Has the Ministry of Mines checked whether AVZ presented the Minutes of the General Assembly of Associates to prove that all Dathcom's partners have agreed to give up part of PR13359?

• Is the part of PR13359 unilaterally "renounced" by AVZ, is it transferred to AJN in which Nigel holds 9.65% of the shares? If this is the case, these actions will lead to the loss of assets, to the detriment of Congolese public enterprises and the Congolese state.

In addition, the COMINIERE courier denounced the following violations and frauds of AVZ:

1. The solo management of the JV without the participation of the representatives that COMINIERE has designated within Dathcom.
2. AVZ Power has signed a memorandum of understanding on the rehabilitation of the Mpiana Mwanga hydroelectric power plant with the Ministry of Hydraulic Resources and Electricity while ignoring COMINIERE (State representative) who owns the said power plant.
3. AVZ is used to making publications to the Australian ASX stock exchange without contacting partners and obtaining their opinions.

1. AVZ has never fulfilled its commitment to COMINIERE given in the JV contract to pay advances on dividends.
2. Mr. Graeme Johnson, who is Chief Executive Officer of Dathcom and Technical Director of AVZ, was sentenced to three years in prison, Dathcom was penalized by $50 million. This was never published by AVZ in its announcements in 2021, everything is hidden.

Reminder: according to Mining Agents, for the fields studied, Law No. 007/2002 of 11 July 2002 on the Mining Code as amended and supplemented by Law No. 18/001 of 9 March 2018, Articles 23 bis, 33, 69 paragraph 2 and 71 provide for the following conditions for the transformation of PR into PE:

• The feasibility study of the exploitation of the deposit to demonstrate the existence of an economically exploitable deposit;
• The notarized declaration of the commitment to transfer to the State of 10% of the shares or shares of the share capital that are free of all charges and not dilutable;
• The financing plan with identification of the sources of financing targeted, to demonstrate the existence of the financial resources necessary to carry out its project according to a plan to finance the development, construction and operation of the mine as well as the plan for the rehabilitation of the site at its closure.
• Access to the exploitation of a State-owned studied, documented or worked deposit, obtained by tender, is conditional on the payment of a doorstep to the latter, representing 1% of the value in place of the said deposit. The value in place of the deposit is defined as the price obtained for the said deposit in the context of the call for tenders.