Agree, FFX should make the payment to LLL now rather than roll...

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manny100

5,647 Posts.

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29/05/24

11:59

Post #: 74061387
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Originally posted by xfactor1: ↑

I understand your point, but it raises several questions for me considering the settlement payment (USD $60 million) has already been paid, and FFX appears to be in a weak negotiating position.
Given my lack of a commercial law background, should the MOU announcement (noting it may just be included in the settlement legal documents) have included language stating that while transferring FFX's interests/titles to the Mali Government, all "outstanding debts owed" to creditors would also be forgiven / transferred? The publicly announced settlement only mentions 'settling all disputes with the Government concerning the Morila SA mine.'
What does FFX realistically hope to achieve by further negotiating with the Mali Government considering the settlement payment has already been made and it's clear FFX has no bargaining power? Is FFX hoping that the Mali Government will agree to conflate the issue regarding the Arbritation Notice recived into the MOU / Tripartite Deed?
How long will Leo Lithium wait for FFX to continue this charade before pursuing legal action? The settlement payment has already been made, and Leo Lithium, not FFX, suffered through this.
Isn't it 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? If Leo Lithium takes legal action, FFX will likely cite further delays in 'returning capital to shareholders.' 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."

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Agree, FFX should make the payment to LLL now rather than roll the dice and wait.
Rabbits in headights???
FFX Price at posting: 20.0¢ Sentiment: None Disclosure: Held
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