Leo Lithium (ASX:LLL) reports that the Australian Securities Exchange (ASX) will not waive ASX Listing Rule 9.1 to permit Firefinch (ASX:FFX) to sell more almost 211 million fully paid ordinary shares held by Firefinch in the company.
The escrowed shares equate to about 17.6% of all shares in the company, which are subject to ASX imposed escrow until 23 June 2024.
At the request of Firefinch, the company applied to the ASX for a waiver of ASX Listing Rule 9.1 to permit Firefinch to sell the escrowed shares “in an orderly and controlled manner and for the escrowed shares to subsequently remain free of escrow”.
The ASX has determined …the proposal will cause a change in beneficial interests of the escrowed shares
The ASX has determined that it will not grant the waiver requested as the proposal will cause a change in beneficial interests of the escrowed shares and Firefinch’s circumstances do not fall within any of the “exceptional circumstances”.
It is reported that pursuant to the terms of the ASX imposed escrow, prior to 23 June 2024, Firefinch is not permitted to dispose of, or agree or offer to dispose of the escrowed shares.
It is also not permitted to create, or agree or offer to create, any security interest in the escrowed shares; or do, or omit to do, any act if the act or omission would have the effect of transferring effective ownership or control of the escrowed shares, except in limited circumstances as permitted by the ASX Listing Rules, for example by way of a takeover or scheme of arrangement of Leo Lithium.
Leo Lithium is developing the ‘world-class’ Goulamina Lithium Project (Goulamina) in Mali.
Goulamina represents the next lithium project of significant scale to enter production. The hard rock lithium project will be the first of its kind in West Africa. Early stage development is underway and first production targeted for H1 2024.
In June, Firefinch executed the $738 million demerger of Leo Lithium from Firefinch.
The transaction involved the demerger of Firefinch’s interest in the Goulamina Lithium Project, which is one of the largest undeveloped ‘high-quality’ spodumene deposits globally.
Leo Lithium also raised $100 million under the IPO, which included a pro-rata priority offer to existing Firefinch shareholders, a shortfall offer to new investors and existing Firefinch shareholders and an offer to Firefinch.
Images: Leo Lithium Ltd
