A new thread to help keeping AVZ Monono's ownership information in one place and enable holders to stay inform by quickly finding facts and information about this topic without being scared and mislead by trolls.
Hopefully, posters will post here to keep the thread alive until the uncertainty is put to bed.
If you have any new information related to AVZ ownership topic please help to post it here to keep this centralised.
(ii) Cominiere Transfer Claim (AVZ Announcement dated 04/05/2022: "Ministerial Decree Received to Award the Mining Licence" (link here)). It was alleged that Jincheng/Jijin had bought 15% from Cominiere of which AVZ stated this in the announcement: "such purported transfer would be restricted under the terms of the existing shareholders agreement between the Dathcom shareholders and accordingly, any purported transfer of the 15% interest to a third party would be a material breach of the pre-emptive rights contained in the existing Shareholders Agreement owed to AVZI, invalid and of no force or effect"
(iv) Dathomir Claim (AVZ Announcement dated 04/05/2022: "Ministerial Decree Received to Award the Mining Licence" (link here)). It was alleged that AVZ's 15% acquisition of Dathomir is not valid and Dathomir is still the owner of 15% despite AVZ had paid (US$1m + US$20m) for the options. Here is what AVZ stated in the announcement regarding this allegation: "the Tribunal Decision does not purport to (nor does it, in fact or under DRC law) have any effect on: • AVZ’s 75% equity interest in the Manono Project, to which AVZ holds good legal title; or • the sale and purchase agreements under which AVZ acquired that interest (which AVZ has duly performed and completed and which have not been terminated or annulled by any order, letteror otherwise)"
Meanwhile, AVZ has come into conflict with its original partner in Manono, Dathomir Mining Resources. This company belongs to Cong Mao Huai, often called Simon Cong, a key middleman between China and the DRC deemed to be close to Zoé Kabila (AI, 23/04/21). The Lubumbashi High Court issued a ruling in late December in the case of Dathomir versus the joint venture owned by AVZ that operates Manono, Dathcom Mining, AVZ's technical director, geologist Graeme Johnston, and Papalas Musagi Wabulasa. Wabulasa is the clerk of the Lubumbashi branch of the public entity that registers companies and changes to shareholders or statues, the Guichet Unique de Création d'Entreprise.
In December, the Congolese judges ordered Dathcom to pay Dathomir $50m and for Dathcom's share certificate of 30 August 2021 to be confiscated and destroyed. The court also found Wabulasa and Johnston to be guilty of forgery and requested Johnston's arrest. There have reportedly been appeals filed against the ruling.
Dathomir had bought a 70% stake in Manono from Cominière in 2016. It then sold the majority of this to AVZ in 2017. The Australian group then sought to increase its stake. AVZ struck a deal with Dathomir in June 2019 to buy 5% of the lithium project for $5.5m. It then concluded another deal in August 2020 for Dathomir's remaining 10% for $15.5m (AI, 21/10/20).
The court decision mentions that Dathomir said that it sought an expert opinion on the sale price agreed with AVZ before the transaction was finalised and the payments made, believing that both the sale price and the stock market announcements made by the Australian company did not reflect the real value of the shares. According to the decision, Dathomir claimed to have then decided to cancel the transaction. The judgement states that the company, however, was said to have learnt that, on 30 August 2021, Wabulasa and Johnston had drawn up Dathcom's new shareholder agreement showing a 75% cut for AVZ, meaning it included Dathomir's shares.
In the ruling, it stated that Dathcom had argued that no wrongdoing had been committed by Jonhston, as he had not made any false statements or filed any false share transfer agreements, but also that the action was inadmissible because share transfer agreements could only be invalidated by the arbitration judge as chosen by the parties. In the ruling, it is stated that Papalas Musagi Wabulasa said that he had destroyed the share certificate of 30 August 2021.
Cominiere Transfer Claim: below are some links to this.
If you have any new info, future update, it would be great if you can help to post in this thread.
For me, I reiterate my point of view again that AVZ will own minimum 51% irrespective and it's not a question of if but when will I accumulate more AVZ shares (need to relying on the chart thread to pick entry points).
AVZ Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
(20min delay)