Favourable Ruling in ICC Emergency Arbitration Proceedings against Cominière
AVZ Minerals Limited (ASX: AVZ, OTC: AZZVF) (AVZ or Company) refers to its previous announcement dated 17 April 2023 titled “New legal action to affirm interests in the Manono Project” in respect of arbitration proceedings before the International Court of Arbitration of the International Chamber of Commerce (ICC) against Congolaise d’Exploitation Miniere (RCCM 14-B-5938) (Cominière) (Cominière Arbitration Proceedings).
As part of the Cominière Arbitration Proceedings, the Company, via its subsidiaries and Dathcom Mining SA (Dathcom), brought an emergency arbitration application under ICC rules, heard by an emergency arbitrator (Emergency Arbitrator) on 3 May 2023, seeking injunctive relief for the purposes of restraining Cominière from taking any actions with regards to its purported termination of the Dathcom Joint Venture Agreement (Dathcom JVA).
As previously disclosed, AVZ considers Cominiere’s purported termination of the Dathcom JVA to be unlawful as it was attempted without valid grounds and in a manner contrary to the express terms of the Dathcom JVA.
The Emergency Arbitrator concluded that she had jurisdiction to order emergency relief and has found in favour of the Company’s emergency application.
The Emergency Arbitrator’s order, dated 5 May 2023, provides as follows:
• Cominière is prevented from taking any action or taking any steps, that would result from the implementation of the termination of the Dathcom JVA and/or the consequences of such termination, until the final award on the merits of the broader Cominière Arbitration Proceedings is made;
• Cominière must comply with Section 11.1 of the Dathcom JVA (being the requirement to adjudicate any disputes via arbitration before the ICC) and to refrain from bringing any litigation in connection with the Dathcom JVA and/or the termination it claims to have effected, before the courts in the Democratic Republic of Congo (DRC), until the final award on the merits of the broader Cominière Arbitration Proceedings is made;
• any violation to the abovementioned orders, will be subject to a penalty of 50,000 Euros per day of violation and any dispute concerning the liquidation of the penalty, shall be reserved for the arbitral tribunal as part of the Cominière Arbitration Proceedings, which will rule on the issue of
AVZ Price at posting:
78.0¢ Sentiment: Hold Disclosure: Held
(20min delay)