There seems to be a confusion (or attempt to confuse) holders regarding AVZ's (part) ownership of Manono's PR13359 from the recent announcement. So I try to itemise the ownership structure as below:
Dathomir Claim:
Regarding the Dathomir Claim (iv), it appears that Dathomir is not happy with what they got (US$21m) for their sales of 15% ownership to AVZ (5% options [AVZ announcement: 24/06/2019 "AVZ to Increase Equity Stake in the Manono Project"] + 10% options [AVZ announcement: 21/09/2020 "AVZ to increase equity stake in Manono Project to 75%"], where both options were exercised per AVZ announcement: 29/10/2021 "Quarterly Activities/Appendix 5B Cash Flow Report" which states: "Exercised options to acquire Dathomir’s 15% shareholding in Dathcom Mining. AVZ increased its interest in the Manono Project from 60% to 75% by exercising the options to purchase Dathomir’s minority shareholding of 15% equity in Dathcom Mining for US$20M (~AUD$27M). Share certificates have been awarded and registered at the courts in the DRC."
I see no risk that AVZ will lost this 15% ownership as the options has been fully and legally exercised by AVZ with payment made to Dathomir per the Sale Purchase Agreement between AVZ and Dathomir/Dathcom.
Cominiere Transfer Claim:
If Cominiere had actually sold 15% to JinChen/JiJin, and the transfer had happened, and this done without statisfying the terms of the existing (Dathcom) shareholders agreement, then AVZ can take this to court to have this invalidated.
All in all, I believe that the market and some (recent?) holders over reacted on the potential legal issues without fully understanding the background of all the past transactions between parties. This, plus the bearish trend from the general equity has become a perfect storm causing the carnage with SP the last few days.
For me, this is a good opportunity to acquire more.
