How AVZ is Financing the Legal Dispute at the ICC Tribunal?

The Manono Lithium and Tin Project, situated in the Democratic Republic of Congo (DRC), is poised to become one of the world's largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits. Managed by AVZ Minerals, the project represents a significant development in the global lithium market.

AVZ Minerals currently holds a 65% interest in the Manono Project. The company has been actively increasing its stake, purchasing an additional 5% equity interest in Dathcom, a joint venture partner, raising its total equity interest to 65%. In September 2020, AVZ Minerals reached an agreement to acquire a further 10% equity in the project for $15. 5 million.

Dathcom Mining's Role

Dathcom Mining SA, a joint venture vehicle between AVZ Minerals and La Congolaise D’Exploitation Miniere of the DRC Government, plays a pivotal role in the project.

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The DRC Minister of Mines has signed a ministerial decree to award the mining licence to Dathcom Mining SA.

Dathcom Mining SA is a joint venture vehicle through which AVZ Minerals owns the Manono Project. AVZ Minerals holds a 65% interest in Dathcom. A Scoping Study released in May 2019 confirmed the Manono Project as the largest undeveloped hard rock lithium project in the world – in terms of grade, mine life, and expandability.

AVZ Minerals purchased a 5% equity interest in Dathcom, making the total equity interest 65%. The first tranche of US$500,000 was paid to Dathomir Mining Resources SARL, with US$5 million to be paid to Dathomir at any time within 36 months from the date of the agreement.

The Manono resource is the largest lithium project with the highest grade owned by an ASX-listed company, with a Measured, Indicated and Inferred Resource of 400 Mt at 1. 65% Li2O, 715 ppm Sn and 34 ppm Ta. AVZ’s MD Nigel Ferguson says: “AVZ is pleased to receive confirmation of its increased equity stake in our Tier 1 Manono Lithium and Tin project. ”

The DRC Minister of Mines has signed a ministerial decree to award the mining licence to Dathcom Mining SA, in which AVZ holds a 75% interest. The mining licence will be issued after the payment of surface rights fees.

Location and Geology

The Manono Project is located about 500km north of Lubumbashi in the southern part of the DRC. It spans approximately 188km² within the mining licence PR13359. The project lies in the Kibaran Belt, extending across 1,000km through Katanga and into south-west Uganda.

Feasibility Study

A feasibility study completed in April 2020 outlined the project's viability. The study projects a mining life of 20 years with an estimated capital investment of about £391. 2 million ($545. 5 million). Production is expected to commence by the end of 2021.
Resource Estimates and Environmental Impact

Substantial Mineral Resources

The Manono Project boasts total mineral resources of 400-million tonnes grading 1. 65% lithium oxide, among other minerals. This positions it as the largest lithium project with the highest grade owned by an ASX-listed company.

Financing from Locke Capital Limited

To support its activities, including legal costs, AVZ Minerals has secured $20 million funding from Locke Capital Limited, a global litigation funder based in London.
Locke Capital Limited is a global litigation funder based in London, United Kingdom. The company invests in experienced teams with successful track records.

They look for organized and budgeted case plans with credible resolution strategies. Their investment parameters are flexible, and they are empowered by their investors to be creative and work with their borrowers to provide a funding solution that aligns with their broader strategic objectives.

Locke Capital is committed to efficient and collaborative origination, diligence, and investment management. They aim to build long-term relationships. The key principal of Locke Capital is Nick Huntley Johnson.

Locke Capital has deep experience in funding complex litigation proceedings. For instance, AVZ Minerals has signed a binding term sheet with Locke Capital to secure $20 million for covering corporate, legal, and project costs.

Conclusion: A Strategic Lithium Resource in Central Africa

The Manono Lithium and Tin Project stands as a testament to AVZ Minerals' ambition and strategic foresight. With its vast resources, potential low environmental impact, and strategic location, the project is set to play a crucial role in the global lithium market. Despite legal challenges, the firm's commitment to developing this significant asset in the DRC continues unabated, promising a new era of lithium production in central Africa.

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