I'll let you decide, but in my opinion if it wasn't an "irregularity" with the licence transfer it would have been something else as retribution for Firefinch ceasing funding to Morila SA, or maybe the action of ceasing to fund wasn't the issue but the manner in how it was done may have been?
If it was the case of an irregularity, then there is a lot of experienced professionals ie: (a) FFX executives, (b) Australian, Malian law firms (c) Australian, Malian financial advisors and auditors/accountants (d) in-country Managers that have all let down Leo Lithium shareholders.
Further confirming my doubts of an "irregularity" .. .. .. obviously, we will never be the wiser, both LLL and FFX will maintain their stance as it being an irregularity otherwise it could then be deemed an admittance by the Boards of FFX and LLL that those involved (all long gone, except for three) to get the licence transferred had screwed up? IMO, the only way they can avoid shareholders casting aspersions is to divulge what the irregularity was? and why is Firefinch Limited not only contributing A$11.5 million to the settlement but have also forgiven Leo repaying the sum of A$574,125 and will cease to accrue a debt of A$939,532 which Firefinch has recorded as being owed to it by Leo.
Adding further to this disappointing saga, is the Licence Transfer was critical to having the joint venture established as the lead into the demerger, and more angst as Cowden was paid a bonus of $73,059 for managing the Joint Venture and demerger.
The lawyers report found no fault and of specific interest:
3.2 - Documents;
3.2(d) a copy of a letter dated 18 February 2022 from DNGM, confirming the status of the Exploitation Licence and which states the the Exploitation Licence for lithium and certain "Group 2 minerals" remains valid and does not suffer from any irregularity with respect to the mining regulations in force; and
3.2(e) a copy of Decree No 2022-0199/PM-RM dated 24 March 2022, granting the formal transfer of the Exploitation Licence from Timbuktu to LMSA
4 - Opinion
After conducting our review of the relevant laws and documents outlined above in paragraph 3, we believe that;
(a) the Exploitation Licence is validly held by LMSA, which has good and valid title to the Exploitation Licence it holds;
(b) the Exploitation Licence has been validly granted pursuant to the 2012 Mining Code, is in good standing and has not been cancelled or suspended, in whole or in part;
(c) the Exploitation Licence was granted by decree under the 2012 Mining Code for a period of 30 years, renewable in increments of 10 years until the mineral reserves within the Exploitation Licence are exhausted;
FWIW, how could there be an irregularity if all the legal pomp and ceremony at the ministerial meetings that sign decrees had overlooked it?
Transcript of the decree proceedings protocols: translated with Google Translate
Decree No2202-0199/PM-RM Du 24 March 2022
Authorizing the assignment to the Company operating "Lithium Du Mali SA"
Du Lithium and Lithium exploitation licences Group 2 mineral substances attributed to the Company Timbuktu Ressources SARL
A Torakoro (Bougouni Circle)
The Prime Minister
Considering the Constitution;
Considering the Transition Charter;
Considering Order No 20019-022/P-RM of September 27, 2019 relating to the Mining Code in the Republic of Mali;
Considering Decree No 2020-0177/PT-RM of November 12 2020 setting the conditions and modalities of application of the Mining Code in the Republic of Mali;
Considering Decree No 2021-0361/PT-RM of June 7, 2021 appointing the Prime Minister;
Having regard to Decree No 2019-0642/PM-RM of August 23, 2019 granting a licence to exploit lithium and group 2 mineral substances to the Company Timbuktu Ressources SARL in Torakoro (Circle of Bougouni)
Considering the letter received dated February 7, 2022 from Mr Seydou SEMEGA in his capacity as Co-Manager of the company Timbuktu Ressources SARL, requesting the transfer of the exploitation permit for lithium and group 2 mineral substances in the sector of Torakoro (Circle of Bougouni) for the benefit of operating company Lithium Du Mali SA,
Decrees:
Article 1: The Company Timbuktu Ressources SARL is authorized to transfer to the Operating Company Lithium Du Mali SA, the exploitation permit for lithium and group 2 mineral substances which was allocated to it by Decree No 2019-0642/PM-RM of August 23, 2019 in the Torakoro area (Circle of Bougouni)
Article 2: The Lithium Du Mali SA operating company benefits from the rights and is subject to all legislative and regulatory obligations as well as the commitments subscribed to by the Timbuktu Ressources SARL company.
Article 3: This transfer authorization is valid for the remainder of the duration provided for in Decree No 2019-0642/PM-RM of August 23, 2019.
Article 4: This decree, which take effect from its date of signiture, will be registered and published in the Offical Journal.
Bamako, March 24, 2022
The Prime Minister,
Choquel Kokalla GENTLA
The Malian Lawyer's report can be located in the Supplementary Prospectus (page 241)
If it was just an error in the Licence transfer, or irregularity as the Government of Mali likes to call it, why;
~ is there a large payment to be made as a settlement if the intent was to only move the project to the 2023 Mining Code?
~ why was selling the final 40% of the project a better option than remaining with 26%?
++ also bearing in mind that LLL until they terminated the Cooperation Agreement had rights over 150,000t per annum of stage 2 spodumene for the life of the mine, which @US1,000t equates to US150 million per annum gross sales.
All academic now but healthy debating versus the crap on all the new threads popping up!
cheers
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