GlobalLithium directors throw in the towel in dramatic end to...

GlobalLithium directors throw in the towel in dramatic end to board stoush

Long battlefor board control to conclude after Thursday AGM

JoshuaSmith

13 February2025

Hoursbefore shareholders of Global Lithium were set to vote on control of thecompany, executive chairman Ron Mitchell and non-exec director Matthew Allenhave quit the board.

Mitchellwill exit the company at the conclusion of the AGM, and Allen has withdrawn hisnomination for election as a director.

Iteffectively cedes control of the company to founding director Dianmin Chen,with shareholders Leon Zhu and David Sun likely to be voted in at themeeting.

Chen willact as chair of the AGM given Mitchell's tendered resignation.

Australia'sTakeovers Panel has twice declined to get involved in the board scuffle, whichstarted last year when minority shareholder Sincerity Development, which iscontrolled by property developer Zhu, sought to change the company's directionand take a spot on its board.

WhileMitchell and Allen have fought against the move, citing foreign controlconcerns, and appealed to the Australian government to take a look, it seemsthe writing was on the wall for the board members ahead of the AGM.

Thedirectors previously said they were concerned about the potential consequencesof transferring control of the Manna lithium project east of Kalgoorlie to Chenand associates.

Chen,however, has maintained that the company's focus and spending had wavered fromManna in recent times — notwithstanding the legal matters and fight for boardcontrol.

"As afounding director and shareholder in Global Lithium, I remain sincerelydisappointed at the delays and distractions through a series of unnecessary andcostly processes in dealing with valid shareholder concerns at today'sAGM," Chen said ahead of the meeting.

"Someshareholders will exercise their rights today to demand a renewed focus ondelivering milestones and creating shareholder value, following a sustainedperiod of underperformance.

"Overthe past two years, the company has spent close to A$55 million withoutachieving any major strategic milestones."

GlobalLithium had around $19 million in the bank at the start of the year.

Capitalmarkets firm Shaw and Partners in December cited Manna as one of the mostundervalued lithium developments on the market.

Shares inGlobal Lithium were up 7% to 24c on Thursday, capitalising the stock at $61.5million. It traded above $2.70 in 2022.