The class action relates to the Manono Project in the DRC, which is one of the largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits in the world. The Manono Project is 100% owned by Dathcom Mining SA (Dathcom). AVZ (via a wholly-owned subsidiary) holds its stake in the Manono Project by holding equity in Dathcom. Two other entities also hold (or at relevant time held) equity in Dathcom: (1) a company called Dathomir Mining Resources SARL (Dathomir); and (2) a DRC government entity called La Congolaise D’Exploitation Minière (Cominière).
The claim alleges that, among other things, AVZ failed to disclose: (1) a decision by a tribunal in the DRC in respect of a claim by Dathomir regarding the validity of a share certificate and an extract of a shareholders’ registry from Dathcom (Dathomir Claim); and (2) a claim that Cominière had transferred a 15% interest in Dathcom to Jin Cheng Mining Company Limited (Cominière Transfer Claim), and that certain AVZ shareholders have suffered loss or damage as a result.