My understanding, rightly or wrongly, and no matter what any director or management says, is that the principle issue, and problem is really quite simple now.
Mali continues to see FFX and LLL as closely related, since one was spun out of the other, and the in-country manager was the same person, and they originally shared some directors, as well as administration and other functions, and one owns 17% of the other.
So it's a fair call by Mali, the way they see it, no matter how the situation may stand now.
Anyway, besides all of that, I think it's a simple issue at it's core.
The Mali government wants FFX to pay for Morila, to pay redundancies and taxes and environmental bonds, and it probably has a figure in mind.
If FFX refuses to pay this, then the Mali government may cancel LLL's license at Goulamina.
It's that simple.
This is probably why Leo management have hinted to some shareholders in email and verbal correspondence that they've made an offer to the Mali government.
The offer would be a dollar amount in order to clear the FFX roadblock.
In other words, Leo management have offered the Mali government so many millions, and are just waiting now to see if the Mali government is willing to accept this, or will counter-offer.
It's a wild guess what the offer could be, I'd suggest anywhere from $10 million to $60 million, but I'm expecting about $40 million.
The Mali government may want more though, so the negotiations continue.
At the end of the day, I think it simply comes down to the bottom line, when Leo/FFX and the Mali government reach a financial settlement and agree on a certain dollar amount.
How much will FFX contribute?
Gw
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