Home / Sector / Materials Shares / AVZ Minerals shares are scheduled to resume trading this week. Here's what to watch

AVZ Minerals shares are scheduled to resume trading this week. Here's what to watch

It could be a dramatic week for the ASX 200 mineral explorer.

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Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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Key points
  • The AVZ Minerals share price has rested at 78 cents for nearly four months now
  • Its trading halt has been extended numerous times as the company works to resolve an ownership dispute over its flagship Manono Lithium and Tin Project
  • It's currently expected to return to trade sometime between now and Thursday with news of an outcome

All eyes will likely be on AVZ Minerals Ltd (ASX: AVZ) shares this week. The company is expected to return to trade following an ownership dispute over its flagship lithium project.

The S&P/ASX 200 Index (ASX: XJO) mineral exploration company put its stock in the freezer way back in early May and has continued to extend its halt ever since. It's now expected to return to normal trade on Thursday.

The last AVZ Minerals share price was 78 cents.

Here's what market watchers need to know about the company's dramatic dispute.

A young investor working on his ASX shares portfolio on his laptop.

Image source: Getty Images

What's going on with AVZ Minerals shares?

The AVZ Minerals share price could be pulled from the freezer for the first time in nearly four months on Thursday, likely on the back of news of the company's Manono Lithium and Tin Project in the Democratic Republic of Congo.

The company has 75% ownership of the project's mining licence. The other 25% is owned by La Congolaise D'Exploitation Miniere SA (Cominiere).

Or is it?

This is where it gets complicated. Cominiere was to cede 10% of its stake to the government of the Democratic Republic of Congo after a mining licence was awarded in early May.

AVZ Minerals then planned to snap up the other 15% held by Cominiere, giving it a 90% share in the project.

But Cominiere allegedly went behind its partner's back, selling 15% of its stake to another company: Jin Cheng. AVZ Minerals is arguing the sale breached an agreement between it and Cominiere and is, therefore, invalid.

Making the situation more complicated, AVZ Minerals previously agreed to sell a 24% stake to Suzhou CATH Energy Technologies.  

Therefore, if all goes wrong, the ASX-listed company could walk away with a far smaller stake in the project than it previously anticipated.

With all that in mind, market watchers should keep an eye out for news from the company this week. Most important will be any word on its mining and exploration rights for the Manono Project.  

However, the trading halt on AVZ Minerals' shares could very well be extended once more before Thursday's open.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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