Ann: Huayou Cobalt Group Increases Shareholding in AVZ, page-40

I think it's a great move by AVZ management to let the market know what's happening.

It's only a small change, however I sense the next month or so could get very interesting. News is due re 5/10 Mtpa scoping study and possibly more on clearing up the likely transport route. Even the possibility of a new Chairman being added.

Huayou have some decisions to make very quickly on how badly they want a bigger slice of or possibly even control of AVZ's 60% interest in Manono. And do they do it on market (cheaper) or by exercising the April 10c options (quicker, but more expensive).

If they increase their stake in AVZ by 1% through on-market purchases, they're obliged to self report. AVZ are clearly watching this very closely, so it's likely they would let the market know even if Huayou are a bit tardy.

Buying on market would be cheaper, but the market will start moving pretty quickly (IMO) once Huayou increase their stake by 1%, as it will look like they want to get to the 20% threshold. Maybe they'll start buying on market, see how the market reacts, before deciding if they then need to get to the 20% by exercising some of their options?

Or maybe they'll decide to exercise the options without any on market purchases?

Or maybe they'll do none of the above and I'll still be scratching my head why everyone is sitting back and not chasing the world's largest hard rock lithium deposit?

It may only be a small additional purchase, but I sense Huayou are extremely interested in getting AVZ's 60% interest in Manono.