Posted on 13 Nov 2025
Australia’s corporate watchdog ASIC announced Tuesday it’s suing Perth-based lithium developer AVZ Minerals and two of its directors for allegedly misleading investors.
According to the lawsuit reviewed by Kallanish, ASIC claims that AVZ Minerals and managing director Nigel Fergunson and technical director Graeme Johnston breached duties as they didn’t inform investors of an ongoing legal dispute in the Democratic Republic of the Congo for nearly 12 months.
The legal dispute, related to the ownership of the Manono lithium project, started in mid-2021, ASIC says, citing email and letter communications. In May 2022, AVZ confirmed to the market that it retained legal title to a 75% interest in the project, and went on to refer to “media speculation” as “spurious and immaterial,” the regulator says.
“Proper disclosures were critically important to investors, particularly when the company is operating an asset overseas,” comments ASIC deputy chair Sarah Court. “In this case it was all but impossible for retail investors to travel to an overseas location in central Africa, in which the company’s operations are being conducted. In those circumstances, investors rely on the company to provide accurate and timely information.”
AVZ says it owns 75% of the Manono project in partnership with state-owned company Cominiere, through the subsidiary Dathcom Mining – the holder of the Manono licence. In 2023, the DRC government revoked the mining licence, citing the conflict between the Dathcom joint venture shareholders, which previously included private company Dathomir Mining Resources, and the slow development of the mine. The licence was sliced and a new portion of the project was awarded to Chinese mining giant Zijin-owned Jin Cheng, which also claims to have purchased a 15% stake in the original Manono project from Cominiere.
“Continuous disclosure and director duties are not only legal obligations they are fundamental principles that protect the integrity of financial markets,” adds Court. “ASIC is committed to taking action against any entities we consider fail to meet these obligations, to ensure accountability and to maintain investor confidence.”
In a response statement, AVZ and its directors “strongly deny all allegations of wrongdoing,” in relation to historical market disclosures, adding that the proceedings will be “vigorously defended.”
AVZ was suspended from the Australian Securities Exchange in May 2022 and de-listed in May 2024. The company has a number of arbitration proceedings against Cominiere, Dathomir and Jin Cheng.
The Manono project, located within the Kibaran Belt pegmatite province, is touted as one of the largest hard rock lithium deposits in the world. AVZ has reported a mineral resource of around 842 million tonnes at 1.61% lithium oxide covering the Roche Dure and Carriere de l’Este deposits.
Source:Kallanish
