Ann: ICSID Arbitration Proceedings, page-341

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eztrang

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13/06/23

19:41

Post #: 68267209
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Originally posted by cruiser51: ↑

As asked before, and you did not answer that question, where did you read that AVZ is seeking damages?

Maybe AVZ will in future, who knows, but it is not what the current ASX announcement says.

The ASX announcement states:

The main purpose of the arbitration request is to seek various remedies for the failure of the DRC and its administrative departments, to comply with the obligations under the DRC Mining Code, in particularly in the implementation of the various measures that should have led to the issuance of an Operating Permit to Dathcom resulting from the Research Permit "PR 13359", for the development of the Manono Project.

The Claimants submit that the direct consequence of this failure, which is not an isolated act, is the blocking of the development of the Manono Project. As a result, the impact on Dathcom's principal asset and more generally on the Claimants' and the Company's investment, is severe.

The Company considers the conduct of the DRC to be unlawful and the Company together with the Claimants, will take all actions necessary to protect the interests of its stakeholders.

I think you are jumping the gun by screaming that AVZ is 'claiming damages'.
There is absolutely no mention of damages.
It could well come to claiming damages, but to do that at this stage is just not smart.
It is schoolyard mentality.

The court will try to bring the parties together to negotiate.
If negotiations are not possible and AVZ is pushed out, of course AVZ will claim damages.

I don't know if the DRC wishes to go that path, the DRC is slowly starting to realise that 75% or even 60% of currently 6.6 million metric tons of lithium (and that is without CdL) is a hell of a lot of money.
Just try to put a value on that and you might understand that the DRC could well be interested in a negotiated outcome.

Expand

"seek various remedies"

One remedy would be to issue a mining licence but that would not cover lost time, so it's only a partial remedy.
The other obvious remedy would be financial compensation / damages.
Since they are asking for "remedies" plural, at least one of those is some sort of financial payment, IMO.

AVZ Price at posting: 78.0¢ Sentiment: Hold Disclosure: Held
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Ann: ICSID Arbitration Proceedings, page-341

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