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- AVZ Minerals (AVZ) officially launches legal action against Dathomir Mining Resources regarding the Manono project in the Democratic Republic of Congo
- The company has filed the first of two International Chamber of Commerce (ICC) arbitrations against Dathomir to affirm a 15 per cent stake in the project
- This comes more than a year after Dathomir claimed to terminate the binding agreements it had entered with AVZ over the 15 per cent stake
- Despite the agreements being completed in August 2021, Dathomir has maintained its claims and denied the validity of AVZ Minerals’ acquisitions under the agreements
- AVZ’s shares have been suspended since May 2022 and last traded at 78 cents
AVZ Minerals (AVZ) has commenced legal action against Dathomir Mining Resources regarding the Manono project in the Democratic Republic of Congo.
The company has filed the first of two International Chamber of Commerce (ICC) arbitrations against Dathomir to seek a declaration affirming that AVZ is legally entitled to a 15 per cent stake in the lithium and tin project.
AVZ confirms that it retains legal title to a 75 per cent interest in the Manono project and pre-emptive rights over 15 per cent of Cominière’s 25 per cent interest in Dathcom Mining, the company through which the Manono project is held.
AVZ Minerals, its subsidiary AVZ International, and Dathomir entered two separate binding agreements in 2019 and 2020 for AVZ Minerals to acquire 10 per cent and five per cent stakes in Dathcom.
In May 2021, Dathomir claimed to terminate the agreements, but the letter in which it sought to do this reportedly didn’t cite any valid ground, nor did it result in terminating either of the sale and purchase agreements.
Despite the agreements being completed in August 2021, with payment being made on time, Dathomir has since maintained its claims to have terminated the agreements and denied the validity of AVZ Minerals’ acquisitions under them.
After filing the first ICC arbitration on December 1, AVZ will soon file the second to affirm its acquisition in August 2021 of the 15 per cent interest in Dathcom. The company said this will “put an end, once and for all, to Dathomir’s claims and to recover losses sustained from them”.
AVZ believes it has “strong prospects of success” in the Dathomir Arbitrations, and Jin Cheng ICC Arbitration Proceedings and will pursue its claims to vindication.
AVZ’s shares have been suspended since May 2022 and last traded at 78 cents.
