AVZ to delist from stock market

AVZ Minerals is set to delist from the Australian Stock Exchange after two years of its shares being suspended, as multiple disputes around its project continue.

The Perth-based lithium hopeful told the market it would delist from the ASX on May 13, as it continues to fight for ownership of its hard rock lithium deposit in the Democratic Republic of Congo.

The junior miner has multiple disputes ongoing over the Manono project, of which it claims a legal right over a 75 per cent stake and pre-emptive rights over a further 10 per cent stake.

Before AVX suspended its shares in May 2022, it had a market capitalisation of about $2.7 billion, with its shares last trading hands at 78 cents apiece.

“Whilst the AVZ board acknowledges the suspension from quotation has been, and the prospective delisting will be, frustrating for its shareholders, in the AVZ board’s view it had proved entirely necessary to protect shareholder interests and…this currently remains the case,” AVZ said in a statement.

“AVZ will continue to seek a fair and equitable resolution to the disputes surrounding the Manono project with the relevant stakeholders and will continue to defend its rights through international arbitration.”

The company noted that the government of the Democratic republic of Congo and other parties have failed to comply with arbitration rulings in favour of AVZ.

Its ability to fund continued legal action has been crimped by its falling cash reserves – in the past nine months its case reserves have declined from $18.9 million to $4.2 million at the end of March.

To address that constraint, the company is in advanced discussions with Locke Capital for a $US20 million working capital and litigation funding facility.