As fans might have noticed, the AVZ Minerals Ltd (ASX: AVZ) share price hasn’t traded on the ASX for most of May. In fact, the ASX lithium share has only spent 3 sessions out of the freezer this month.
At the time of writing, the stock remains frozen at 78 cents. That’s where it closed on 6 May.
So, what’s going on with the AVZ Minerals share price and when will it trade again? Let’s take a look.
When will AVZ Minerals shares trade again?
Fans of AVZ Minerals can breathe easy knowing the company’s share price is expected to come out of the freezer on Friday.
Though, it’s best not to hope too high. Trading halts and suspensions are commonly extended.
The reason behind the company’s current suspension is also extremely complicated.
It all boils down to the Manono Lithium and Tin Mine, located in the Democratic Republic of Congo.
See, AVZ Minerals has a 75% share in the mine. La Congolaise D’Exploitation Miniere SA (Cominiere) owned the other 25%.
AVZ Minerals recently received a mining licence for the project. That triggered a term in a joint venture agreement between it and Cominiere. The term meant the latter was to cede 10% of its interest in the mine to the Democratic Republic of Congo Government.
AVZ Minerals expected to then be able to acquire Cominiere’s remaining 15%.
This is where is gets really messy. Cominiere says it sold 15% of its stake to Chinese company Jing Cheng Mining Company.
AVZ Minerals and Jing Cheng are now going head-to-head in a legal battle over the stake. That’s what the company is planning to update the market on this Friday.
No doubt, all eyes will be on the AVZ Minerals share price if it does thaw this week.
And if you thought it couldn’t get messier, think again. AVZ Minerals has already agreed to sell 24% of its stake in the mine to another party.
That means, if all goes wrong, the company could hold a 51% stake in the Manono Lithium and Tin Mine.
The post When will AVZ Minerals shares start trading on the ASX again? appeared first on The Motley Fool Australia.
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More reading
- Do any ASX lithium stocks pay dividends?
- What’s going on with the AVZ Minerals share price?
- 5 things to watch on the ASX 200 on Wednesday
- ASX 200 midday update: Westpac result impresses, AVZ halted
- Why is the AVZ share price halted today?
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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