AVZ Minerals Secures Strategic Funding Pact to Resolve Legal Battles
In a strategic move, AVZ Minerals, an Australian company, has inked a significant binding term sheet with Locke Capital, a global litigation funder.
The deal, valued at $20 million, aims to address corporate, legal, and project expenses while resolving multifaceted litigation surrounding the Manono lithium and tin mine in the Democratic Republic of Congo (DRC).
The funds will play a pivotal role in managing several arbitration cases at the International Chamber of Commerce (ICC) in Paris, primarily revolving around the Manono lithium permits.
Notably, AVZ has secured emergency relief orders from the ICC against State-owned Cominiere, imposing substantial penalties for any actions taken against the Dathcom Mining joint venture.
AVZ holds ownership of the extensive Manono project, recognized as one of the world’s largest hard rock deposits of lithium and tin, through its Dathcom JV.
The ICC has directed Cominiere to continue exploration and exploitation within specific perimeters pending the tribunal’s determination of the Dathcom JV’s termination.
Recent disputes have surfaced with Zijin Mining and JV partner Manono Lithium, leading to conflicting claims over the northeastern tenement of the Manono mine. The Democratic Republic of Congo reportedly revoked permits, citing inadequate project development.
Nigel Ferguson, AVZ’s CEO, expressed enthusiasm about the collaboration with Locke Capital, highlighting the funder’s expertise in handling intricate litigation proceedings.
He emphasized Locke’s proposal, post-diligence, as validation of AVZ’s strong position across its legal disputes, foreseeing a favorable resolution in the company’s favor.
