I have stated I am now all good for the $11.5m and signing the...

First 105 Last

Share
Profile

Follow
GARETH78

8,366 Posts.

2976

29/05/24

15:35

Post #: 74066540
Share
Originally posted by xfactor1: ↑

I understand the hat perspective, but Simon just stated that FFX's current pursuit of a settlement with the Government is entirely separate from what's happening now with Ganfeng, the Government, and Leo Lithium (which was just settled via a USD $60 million payment).

Assuming we believe that and follow that logic, the current FFX negotiation with the Government and the AUD $11.5 million payment to LLL for what was just settled regarding the Goulamina project are two separate issues that should not be conflated.

Until I hear otherwise, I believe my earlier point still stands: it is in FFX's best interest to make this contribution payment as soon as possible to avoid further legal trouble, which would only negatively impact FFX shareholders.
Leo Lithium has officially stated and reinforced in conversations with shareholders that if the agreement with FFX is not honored (meaning FFX doesn't make the AUD $11.5 million payment to Leo), they do have a contingency plan to go after them as Leo Lithium will reserve all their rights.
If Leo Lithium takes legal action, FFX will likely cite further delays in 'returning capital to shareholders' and the legal outcome may result in more than a AUD $11.5m figure.
During this time, as @manny100 pointed out, FFX might receive their 17.6% share of the LLL settlement proceeds, which other creditors (like 'EGTF') may then go after.

To clarify, I'm not repeating this for your sake, but more so for others like @pier1 whose logic I can't comprehend.

Expand

I have stated I am now all good for the $11.5m and signing the Morila deal, even if that consigns the FFX holding and LLL escrow to possibly multiple years of international law suits.

AVZ is a great example of this.

Which is why FFX only holders are unlikely to be over the moon and as @ozblue has already highlighted, the current FFX BOD will likely come under pressure from large FFX only holders to wind up the company or replace them.
FFX Price at posting: 20.0¢ Sentiment: Hold Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

What's causing the cost-of-living crisis, and how to navigate it

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war