AVZ 0.00% 78.0¢ avz minerals limited

If AVZ had suspicions regarding bias within the court system of...

  1. 192 Posts.
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    If AVZ had suspicions regarding bias within the court system of the DRC, it's puzzling why they chose to request the US$20 million returned by Dathomir to be held in escrow (as per the announcement below) rather than retaining it in their own account . Whether the 20 million's location would sway the ICC judgment is uncertain, doesn't make sense that it would though. Perhaps AVZ thought it would project a favourable image for the ICC, might have been a better decision if they had maintained the funds in their own account instead of requesting it be placed in escrow. sure would be handy right now.

    "On or about 24 August 2021, Dathomir’s bank (on Dathomir’s instructions) returned the
    US$20,000,000 balance of the purchase price to AVZI. At the request of AVZI, the Commercial Court
    of Lubumbashi subsequently made orders providing for the US$20,000,000 to be paid into escrow"


    It's conceivable that the current dire situation might have been averted had AVZ opted to negotiate upon Dathomir's initial request. Unfortunately, AVZ declined to engage in negotiations. Furthermore, when the court intervened and appointed a third party to assess the value of the 15% of Dathcom, AVZ opted not to participate, as evidenced by the announcement below. This lack of engagement at this critical stage may have contributed significantly to the escalation of the conflict to its current disastrous state.

    "On or about 27 August 2021, the Commercial Court of Lubumbashi appointed an expert
    to assess the value of the 15% of the shares in Dathcom. That valuation has no bearing on the validity
    and enforceability of the 2019 SPA and 2020 SPA."

    Interestingly enough though, when faced with a $25 million fine (suspended till pending Supreme court case) and the potential jeopardy of Graeme's liberty, AVZ management suddenly became quite receptive to negotiating with Dathomir.

    "Notwithstanding AVZ’s view as to the strength of its case against Dathomir, AVZ is not opposed to a
    negotiated resolution of the Dathomir dispute with a view to expediting development of the Manono
    Project.
    A negotiated resolution with Dathomir could only occur on the basis that the criminal complaints by
    Dathomir and Cominière are withdrawn and it is conceded by Dathomir that AVZI validly acquired the
    shares on or about 13 August 2021 so that the baseless criminal sanctions imposed at Dathomir’s
    behest can be set aside."

    While some may persist in arguing that management decisions bear no responsibility for our current predicament, I think that AVZ's belated recognition of the necessity to engage in negotiations arrived far too late, setting off a chain reaction of adverse consequences.
 
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