AVZ Minerals secures funding facility with Locke for Manono Project litigation

AVZ Minerals Limited has reached a significant milestone by signing a Binding Term Sheet with Locke Capital I, LLC and Lock Capital Limited, establishing a pathway to a formal agreement for a general working capital and litigation funding facility. This facility will support AVZ in covering corporate, legal, and project costs while addressing various litigation matters concerning the Manono Lithium and Tin Project.

Comprehensive Funding for Manono Project Litigation

The Term Sheet details the intention for the Funding Facility to fully fund legal costs incurred in three ICC arbitration proceedings involving La Congolaise d’Exploitation Minière, Jin Cheng Mining Company, two ICC proceedings with Dathomir Mining Resources SARLU, and ICSID proceedings against the Democratic Republic of the Congo. This comprehensive coverage extends to further legal costs, corporate expenses, and project costs necessary for maintaining the Manono Project’s assets.

Exclusive Due Diligence and Future Plans

Following consultations and negotiations, AVZ’s Board has chosen to enter an exclusive due diligence phase with Locke, aiming for a formal agreement by 31 March 2024. AVZ’s CEO, Nigel Ferguson, expressed confidence in Locke’s capabilities, highlighting the validation of AVZ’s position across its legal disputes. AVZ remains dedicated to defending its legal rights and advancing the Manono Project.

Progress Towards Formal Agreement and Litigation Funding

AVZ will provide necessary due diligence materials to Locke, moving towards formalizing the Funding Facility. In the meantime, AVZ will continue its arbitration proceedings, with funds to be released according to a fixed schedule based on cash flow forecasts. This strategic funding partnership underscores AVZ’s commitment to resolving its legal challenges while advancing the Manono Project.