AVZ Minerals Limited (ASX: AVZ) via its subsidiaries and Dathcom Mining SA, formally commenced arbitration before the International Court of Arbitration of the International Chamber of Commerce (ICC) against La Société Congolaise d’Exploitation Miniere.
The main purpose of the Cominière Arbitration Proceedings is to seek various remedies for alleged breaches by Cominière of its obligations under the joint venture agreement dated 27 January 2017, as amended from time to time (Dathcom JVA) including declarations to confirm Cominière’s purported termination of the Dathcom JVA and its purported transfer of part of its interest in Dathcom in breach of the Dathcom JVA are each null and void.
Cominiere has allegedly attempted to terminate the Dathcom JVA without valid grounds and in a manner contrary to its express terms. The company alleges Cominiere’s conduct to be unlawful and the company, together with Dathcom, will take all actions necessary, to protect the interests of its stakeholders, not least the people of the Democratic Republic of Congo (DRC).
Cominière holds 25% of the share capital of Dathcom. AVZ confirms that it retains legal title to a 75% interest in the Manono Project and pre-emptive rights over 15% out of Cominière’s 25% interest in the Project (noting that Cominière must cede the other 10% out of its 25% interest in the Project to the Government of the DRC as a condition of the award of the mining licence).
The shareholders of Dathcom (namely, Cominière and AVZ, through a subsidiary) are parties to the Dathcom JVA, and as such, benefit from a pre-emption right on proposed transfers of shares in Dathcom to third parties. Under the laws of the DRC, a transfer of shares made in violation of a pre-emption right of this kind is null and void.
Cominière has allegedly purported to transfer shares in Dathcom to a third party (Jin Cheng Mining Company Limited, a subsidiary of Zijin Mining Group Company Limited) in breach of AVZ’s pre-emption right.
Update on Jin Cheng Arbitration Proceedings
The company is also defending the Jin Cheng ICC Arbitration Proceedings previously addressed in the company’s announcements of 11 May 2022, 17 June 2022, 9 September 2022, 20 October 2022 and 22 March 2023 which relate to the same purported sale of Dathcom shares that is partially the subject of the Cominiere Arbitration Proceedings.
As disclosed in the company’s announcement of 22 March 2023, the hearing was originally scheduled to be heard in mid to late April 2023 limited to the issue of the jurisdiction of the arbitral tribunal raised by the Company. The Company advises that a postponement of the hearing was agreed which is now scheduled for 3 and 4 July 2023.
The company says it is disappointed with what it considers to be an unnecessary delay but maintains its position that it has strong prospects of success in both the Jin Cheng ICC Arbitration Proceedings and Cominière Arbitration Proceedings and will vigorously pursue its rights in those arbitrations to vindication.
For further information please visit: https://avzminerals.com.au/
