AVZ Minerals tells SuperNinja to stop tweeting or the deal is off
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Lithium miner AVZ Minerals says if Michael Langford doesn’t stop tweeting about them, a deal with his Singapore-based consultancy Airguide is off.
Mr Langford has posted a series of tweets since March disclosing information about AVZ’s (ASZ:AVZ) Manono lithium project in the Democratic Republic of Congo.
The information was either not public or wasn’t allowed under ASX listing rules, and the market operator has had to repeatedly pull the company up on it.
The last straw came on Thursday following yet another tweet, now-deleted, from Mr Langford last week.
In a terse letter to the market operator, AVZ said it had asked Mr Langford and Airguide on April 12 to stop tweeting potentially sensitive information the company hadn’t released to the market.
“The company has now advised Mr Langford and Airguide that they are to cease making any comment on AVZ, its projects or operations on social media of any form,” AVZ said.
“If they do their agreement in place with AVZ will be immediately terminated.”
ASX rules say explorers are not allowed to speculate on how large their resource could be, if they don’t have solid data to back it up.
AVZ also had to assure the market operator that Mr Langford had no access to any financial modelling they’d prepared, and agreed it wasn’t appropriate for their unruly associate to publish information that could misconstrue what the company has in the DRC.
AVZ managing director Nigel Ferguson told Stockhead the arrangement with Airguide was “still in play”.
Airguide was appointed as a strategic advisor to open doors in China in June 2017.
The deal was they’d get 15 million performance rights worth $495,000 at the time (3.3c) and a retainer fee.
The first MoU or letter of intent would allow 7.5 million rights to convert into shares — this happened at the end of August last year.
The remaining 7.5 million only convert if a binding offtake (or sales) agreement is signed with a party introduced by Airguide — this has not yet happened.
AVZ’s 2017 annual report said these milestones expired on June 5.
However, in May AVZ issued another 7.5 million performance rights to Airguide, which convert to three tranches when the company’s shares hit 34c, 40c, and 44. These don’t expire until November 2021.