AVZ 0.00% 78.0¢ avz minerals limited

I have no knowledge of the latest negotiations between AVZ and...

  1. 28 Posts.
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    I have no knowledge of the latest negotiations between AVZ and the DRC but i suspect we have a game of " Bluff Poker " being played. My perception is that before the mining license is issued the 15% stake held by the DRC needs to be negotiated. There may also be other aspects that either party is also trying to finalise which may also be impacting on negotiations. eg Collaboration agreement, SEZ, Hydro Power, Downstream Processing, and extra plant output.
    From the DRC point of view, they will want to show that they received a good price and this will be an outcome that they would like to promote during next year's elections. The DRC may have a starting point of at least the same rate as Cath and Associates paid for their share (which is about $150 million for their 15% share). With the increase in Lithium prices this year i am sure many advisors to the DRC ( solicited and unsolicited ) will be suggesting a much higher price for their 15% stake.
    AVZ on the other hand will be negotiating for an amount less thaN the $150 million and also wanting to tie up other conditions such as delayed or in kind terms of payment. AVZ i am sure will also be endeavouring to have finalised the tax and other terms that the project will be operating under.
    Cath and Associates may be requesting to AVZ that the 15% from Comminere after being received by AVZ be on sold to them. AVZ and Cath etc may have discussed this possibility as part of their revised agreement terms and to assist in probable plant expansion.

    I suspect that when all parties are satisfied with the agreed terms we will then get the mining license.

    Once the ML is issued i suggest that the project will proceed quickly and we will then get the BFS etc based on the terms of the ML.

    From my point of view, i am not concerned about the delays. I live in Perth and have been to virtually all the AGM's and other meetings. I have been a shareholder from the early days and have confidence that AVZ will get the project up and running. Africa time just takes a little bit longer than most other places.
 
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