AVZ heading for ASX exit leaving shareholders locked in as international ownership disputes roll on
Simone GroganThe West Australian
Wed, 1 May 2024 1:01PM
The Manono site in Congo. Credit: AVZ Minerals Credit: AVZ Minerals/TheWest
Former market darling AVZ Minerals is set to be removed from local trading boards this month in what will mark two years since shares in the lithium junior were plunged into a trading suspension.
AVZ told the Australian Securities Exchange on Tuesday that it would not keep the company listed while it was battling multiple disputes over ownership of its Manono lithium deposit in the Democratic Republic of Congo.
Under ASX rules, companies that have not traded for two years are required to be removed.
AVZ had a market capitalisation of $2.7 billion before its shares were suspended in May 2022 amid questions about market disclosures.
Delisting marks another nail in the coffin for AVZ, which has since then been engaged in disputes with other companies claiming ownership of part of Manono and has struggled to make progress on its development, of which it claims to own 75 per cent.
Shareholders have also not been able to trade their AVZ shares publicly during the suspension and delisting means their investment would be dragged into a private company.
“Whilst the AVZ board acknowledges the suspension from quotation has been, and the prospective delisting will be, frustrating for its shareholders, in the AVZ board’s view it has proved entirely necessary to protect shareholder interests,” AVZ said.
“AVZ will continue to seek a fair and equitable resolution to the disputes surrounding the Manono project with the relevant stakeholders and will continue to defend its rights through international arbitration.”
The explorer’s latest update on its finances revealed it has just shy of two quarters’ worth of funding left.
“Activities at the Manono site, Dathcom office and the Perth office has been reduced to a bare minimum with expected savings in most areas. Site staff and activities has already been reduced to only cater for security and maintenance of critical items,” AVZ said.
AVZ is trying to secure a loan of up to $US20 million ($31m) to continue fighting arbitration.
