Home Sports Why is the price of AVZ shares stopped today?

Why is the price of AVZ shares stopped today?

48
0

Image Source: Getty Images

The AVZ Minerals LLC (ASX: AVZ) the stock price will not go anywhere on Monday.

This morning is a lithium developer asked to suspend trading before the market opened.

Why was the share price of AVZ stopped?

This morning the price of AVZ shares was suspended until Wednesday or the announcement. The company’s request states:

AVZ Minerals Limited is asking to immediately stop trading in the company’s securities before the announcement of mining and exploration rights for the Lithium and Tin Manono project.

What does that mean?

Judging by the request, it seems that AVZ intends to address concerns about its ownership of the Lithium and Tin Manon project in the Democratic Republic of Congo.

Last week, the company announced that its 75%-owned Dathcom Mining SA business has received a mining license for the Manono Lithium and Tin Project. The remaining 25% of Dathcom is currently owned by La Congolaise D’Exploitation Miniere SA (Cominiere).

Following the issuance of the mining license, Cominiere will transfer 10% of its stake to the government of the Democratic Republic of Congo, and AVZ believes it is entitled to purchase the remaining 15%.

However, Cominiere decided to transfer this 15% stake to Chinese Jin Cheng Mining Company, not allowing AVZ to acquire the stake. AVZ does not consider this legal and intends to fight the claim.

In addition, AVZ previously signed a 24% stake in Dathcom in Suzhou CATH Energy Technologies in exchange for a $ 240 million investment to develop the Manono project. This transaction has not been completed and is still subject to a final investment decision, among other items.

This means that AVZ could potentially become the owner of only 51% of the project if all goes well.

In general, this creates significant uncertainty for investors and explains why the price of AVZ shares was sold last week.

So all eyes will be on AVZ shares if the company publishes an ad in the coming days.

https://www.fool.com.au/2022/05/09/why-is-the-avz-share-price-halted-today/

Previous articleLive updates on the 2022 federal election: Albanez criticizes coalition’s approach to “slander and intimidation” following leaders’ debate | Australian politics
Next articleAre changes in thinking and memory a normal part of aging?