Hey guys. That was my initial reaction to the Russell Wayne...

Hey guys. That was my initial reaction to the Russell Wayne Allen announcement.

Sadly it is a sham that I believe reflects very poorly on the quality of some people.
What has actually happened is that Russell Allen has bought the shares off Formosa Australia....you know the great tie up LER was to have with Formosa Group in Korea and also Formosa Australia.
Formosa now has zero direct interest in LER. They have washed their hands of it.
Sequence of events runs like this;
Mounford announces $4.5 M capital raise plus offtake agreement.
Offtake agreement is cancelled
Henry Cheng gets onto LER board as representative of Formosa Australia by buying 2.52 M LER at $0.014 (?)
Russell Allen buys the shares off Henry Cheng/Formosa Australia at what I calculate is about $0.011
Result. $4.5 M cap raise reduced to $2.5M. Offtake agreement cancelled. Formosa Group in Korea and Formosa Australia have no offcial tie up with LER
I do believe Russell Allen is a 50% shareholder of Formosa Australia but the shares are in his name and not belonging to Formosa in any way shape or form.