Yes vivRookie, it's an interesting clause isn't it?
What you've found is the reason that LLL went down 16% today, with more to come.
The next announcement here will probably be the resignation of the Acting CEO, the company will then have no executives, only non-executive caretakers remaining.
It then goes into Administration and Korda Mentha takeover.
Korda may then decide to accept a "Scheme of Arrangement" offer by someone like Ganfeng at one (1) cent a share or similar.
Ganfeng then control 70% of Leo (LLL).
At that point, Simon (the CEO of Leo) announces his resignation, and the whole LLL goes tumbling down, like here at FFX. The dominoes begin to fall.
Under this scenario, we could assume a current high risk for LLL, hence the sell-off, and so it could sink to 10 or 12 cents over the next month, as anyone given the in-specie shares tries to get out with at least something, before it is potentially also halted.
Cowden is also the non-executive chairman of LLL, so what do you think the Mali government are going to think of any company that he leads, after he quit FFX, and if FFX puts 2,000 Malians out of work with Morila on care and Maintenance, or the company in Administration. The Mali government needs royalties to finance their troops, and they've dropped the other forward tax benefits for FFX as well.
The risk for LLL is very high, so watch it closely.
LLL need a new chairman ASAP.
The FFX shares in LLL need to go to a publicly listed Australian or Canadian Lithium company, but under the rules of administration, the company will have no say, it will be Kortha Mentha or another Administrator that will potentially then be able to decide the fate of Leo LLL - which is a terrible situation for that company to be in, and one of extreme risk in which they feel powerless, and will not have say in their own destiny.
The executive directors and chairmen of FFX could see what is coming, and don't want to be involved in any of it, including the criticism, so they bailed with any money they could also take. You know what they say about rats leaving a sinking ship. It's a gutless spineless act, but these are they characters of leaders that we get these days.
If FFX goes into administration, then the writing could well be on the wall for LLL, because it's fate will then potentially be completely taken out it's hands.
Choose your leaders carefully.
Gw
Expand
(20min delay)