AUSTRALIA’S corporate watchdog has sued AVZ Minerals and two directors, alleging the miner failed to disclose an escalating legal battle with the Democratic Republic of Congo over its lithium project stake.
Reuters reported on Tuesday that the Australian Securities and Investments Commission accused the Perth-based company of breaching disclosure requirements and engaging in “misleading and deceptive conduct” by withholding information about the dispute.
AVZ holds a 75% interest in the Manono lithium project through subsidiary Dathcom Mining. The company has been locked in a legal dispute with the DRC government since 2022 over ownership rights to the project, which contains the world’s largest hard-rock lithium deposits.
The regulator also alleged MD Nigel Ferguson and the firm’s technical director Graeme Johnston breached their director duties by authorising exchange filings that were “false or misleading, or omitted matters” relating to the dispute.
“We allege Mr Ferguson and Mr Johnston failed to inform investors of the ongoing issues in this matter for nearly 12 months,” ASIC Deputy Chair Sarah Court said in a statement.
“The pair allegedly failed to take reasonable steps to ensure AVZ complied with its continuous disclosure obligations and that statements to the ASX were not misleading or deceptive.”
AVZ was suspended in May 2022 and delisted from the Australian Securities Exchange in May 2024. The company did not immediately respond to a request for comment.
