FFX 0.00% 20.0¢ firefinch limited

As far as I am aware, the conditions of the MoU between the...

  1. 6,850 Posts.
    lightbulb Created with Sketch. 4338

    As far as I am aware, the conditions of the MoU between the parties weren't inclusive of any conditions in the Tripartite Deed, although we can only assume that the MoU conditions have progressed.

    The Tripartite Deed is a seperate agreement and the only involvement the Government had was with Ganfeng paying the US$60m on behalf of Leo Lithium and Firefinch Limited.
    (IMO) The Leo Mali CGT liability wouldn't be payable until at least Tranche 1 was paid, also, the whole sale process isn't finalised until the Chinese Government approval and the tranche1 payment is made.

    The sale was re-affirmed by the (in-part) response from Firefinch;
    "In regard to the sale of Morila, an agreement has been reached for the sale of Morila to a Government company. This was in the announcement 8 May, and referred to in the article you referenced in your letter. The sale of Morila, however, has not been settled and is awaiting execution by the Government of Mali."

    Don't know if you have seen this, official press release from the General Administrator of Morila SA, BUT they are having difficulty in finding an investor.
    http://news.abamako.com/h/293807.html

    As per letter to Company, Firefinch can have an EGM to get all the approvals needed, as in;
    ~ sale of Morila, although shareholder approval was not a condition of the settlement, it is only for abiding by Australian regulatory bodies.
    ~ payment of the $11.5m

    As we can't have the Annual General Meeting until the Mali Government settle, so the Auditors can sign off on the financials.

    We also have this;
    "As outlined the Government did not permit the terms of the MoU to be subject of negotiation. Accordingly, Firefinch's obligation to transfer its interest in Morila SA under the MoU is not subject to receiving shareholder approval as required by Listing Rule 11.2. As detailed further below, Firefinch intends to seek shareholder approval in relation to the sale of its interest in Morila SA in connection with its obligation under the MoU (the Shareholder Approval)"
 
watchlist Created with Sketch. Add FFX (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.