AVZ Minerals

AVZ initially claimed to hold a 75% stake in the Manono lithium project, in a joint venture with the state-owned Congolaise d'Exploitation Minière (Cominière). The project attracted international interest, including an agreement with Chinese battery manufacturer CATL, which intended to invest $240 million for a 24% stake.^[4]

However, significant issues arose following AVZ’s disputed attempts to consolidate ownership. In August 2021, AVZ’s acquisition of an additional 15% stake from Dathomir Mining was legally challenged and subsequently invalidated by Congolese courts, reverting AVZ’s effective stake to 60%. This legal defeat raised early concerns over the company's due diligence and corporate governance. Further complications arose after AVZ contested Cominière’s sale of a 15% stake in the project to China's Zijin Mining in late 2021. AVZ repeatedly challenged the sale in Congolese courts but failed to overturn the decision, leading to prolonged legal conflicts and operational uncertainty. These legal battles significantly delayed the project's development timeline, ultimately prompting the Congolese government to revoke AVZ's mining license in February 2023.^[5]

AVZ Minerals' challenges deepened when the company faced shareholder backlash due to its prolonged suspension from trading on the Australian Securities Exchange (ASX). After being suspended in May 2022 amid ownership uncertainty and ongoing litigation, AVZ was ultimately delisted from the ASX in May 2024. The delisting left approximately 21,000 shareholders without liquidity.^[6]

The company became the subject of a shareholder class action lawsuit, funded by litigation financier Omni Bridgeway. The lawsuit alleges that AVZ failed to adequately disclose risks and material information regarding ownership disputes and legal vulnerabilities surrounding the Manono project, causing financial losses to investors.^[7]