ASIC’s statement of claim details the tens of millions of dollars AVZ raised from investors during this period to fund the mine’s development and increase its stake.
AVZ refutes ASIC’s claim but declined to comment further ahead of the shareholder meeting.
“AVZ and its directors, strongly deny all allegations of wrongdoing and the proceedings will be vigorously defended,” it said at the time of the ASIC announcement.
US President Donald Trump brokered a peace deal in June between the Democratic Republic of the Congo and Rwanda to help foster co-operation on critical minerals in the region.Credit: Bloomberg
In July this year, AVZ announced a legal victory in the International Court of Arbitration (ICC) that confirmed its legal title to 70 per cent of the Manono deposit and is seeking orders that it validly acquired the other 5 per cent as announced in 2019.
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If this ruling is accepted by Congolese authorities, this legal title will allow AVZ to sell part – or all – of its stake to a third party to help develop the project.
Chinese groups are already building mining operations in the northern sector of Manono, which now appears to be beyond AVZ’s reach.
President Donald Trump’s recent push to secure supply lines for critical minerals like lithium has raised the prospect of AVZ signing up a US partner to develop its uncontested share of Manono.
Demand for battery storage has sent lithium demand soaring – along with share prices of ASX-listed lithium companies.
“We think the improving outlook for the sector will continue to support equities and suggest investors continue to reassess sector exposure,” Canaccord Genuity analysts said this month.
AVZ was also raided by the Australian Federal Police (AFP) in December last year amid reports by this masthead of alleged bribery in relation to the Manono deposit in the Congo.
“Accusations have been made in the media that persons representing AVZ have engaged in bribery. These accusations have been generic and have not identified any specific conduct,” it said at the time.
“AVZ denies that it has engaged in bribery. To the best of AVZ’s knowledge, no representatives of AVZ have engaged in bribery.”
An AFP spokesman said last week that it will “provide an update at an appropriate time.”
