AVZ 0.00% 78.0¢ avz minerals limited

11-May-2022 Update on the Cominiere Transfer Claim (AVZ...

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    11-May-2022 Update on the Cominiere Transfer Claim (AVZ Announcement dated 04/05/2022: "Ministerial Decree Received to Award the Mining Licence" (link here))
    • Two AVZ's announcement were released on 11-May-2022:
    1. Arbitration Request announcement (click here). AVZ stated in this announcement that: "AVZ International Pty Ltd, wholly-owned subsidiary of AVZ Minerals Limited (ASX : AVZ, OTCQX : AZZVF) (Company), has received a request for arbitration and related correspondence regarding the proposed commencement of arbitration proceedings by Jin Cheng Mining Company Limited (Jin Cheng) before the International Chamber of Commerce in Paris (ICC) to pursue claims by Jin Cheng to be recognised as a shareholder of Dathcom Mining SA (Dathcom).....The Company is considering the request for arbitration and related correspondence and will continue to take all necessary actions to resist Jin Cheng’s vexatious and meritless claims and to protect Dathcom’s and its interests."
    2. Suspension from Official Quotation announcement (click here). AVZ stated in this announcement that: "The voluntary suspension is requested in connection with the finalisation and release of an announcement in relation to its mining and exploration rights for the Manono Lithium and Tin Project. The Company anticipates that it will be able to make an announcement on this matter by commencement of trading on Friday, 20 May 2022."

    IMO,
    • The two announcements are unrelated. (1) is related to Cominiere transfer claim, and (2) is related to the issuance of ML which is delayed due to some procedures/processes yet to be completed and need more time to do so. It appears that some non-holders are trying to lump the two announcements together to generate fear/uncertainty amongst holders.
    • Many non-holders try to create fear from (1) by stereotyping legal issues which can be drawn out typically. From my personal experience going through arbitration process, it can be very quick if parties to arbitration can sensibly arrive at a compromise and the court/judge does not need to be involved. In this case, the process is quick. If parties can't agree, then this become a full blown legal case which can be very long. Naturally, there's a bit of poker game during the arbitration as parties try to bluff each others.
 
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