ASX-listed Firefinch confirms that it recently received a letter from the Mali Minister of Mines, stating that the government would not approve any deed of sale of Firefinch’s interest in Societe des Mines de Morila SA unless Firefinch resolves issues relating to the Morila gold mine.
Firefinch says it has not received any court order in this regard and it emphasises that it is not a party to any agreements between Morila SA and its vendors and suppliers, “nor is there any agreement between Firefinch and Morila SA that would require Firefinch to either continue to fund Morila SA, or meet its debts, or other liabilities”.
Firefinch also reminds shareholders that the company has already written down the value of its shareholding in Morila SA to nil.
While Firefinch considers that it has no liabilities relating to Morila gold mine, it says it has nevertheless agreed to enter into good faith discussions with the government.
The aim of government meetings will be to resolve this matter and reach a solution that results in the government supporting a potential transaction for the company’s sale of its interest in Morila SA, Firefinch informs.
The disposal of Firefinch’s interest in Morila SA to a party better positioned to fund the operation’s ongoing significant development and capital requirements, will be for the benefit of all Morila gold mine stakeholders including employees, community and government, Firefinch posits.
It says the preferred buyer for Firefinch’s interest in Morila SA remains the West African contracting company referred to in the company’s announcement in June.
Firefinch says it will continue to negotiate with this buyer in parallel with government meetings.
Firefinch directors continue to assess options to deliver value to all shareholders including driving and responding to potential corporate transactions, and preparing the process on returning the assets to shareholders, the company says.
It adds that, either way, the directors are committed to deliver results in the best interests of all shareholders.
Any potential transaction to dispose of Morila SA, or a corporate transaction will require shareholder approval.