The Leo Lithium Ltd (ASX: LLL) share price has failed to return to action on Thursday.
Earlier this week, the company requested a trading halt until the earlier of the release of an announcement or the commencement of trade this morning.
Unfortunately for shareholders, it has become apparent that two days was not enough time for the lithium developer to finalise its announcement.
As a result, the company has requested that its shares be suspended for a week until 27 July.
What's going on with the Leo Lithium share price?
As we covered here on Tuesday, Leo Lithium requested a halt after receiving correspondence from the government of Mali. This was in relation to its direct shipped ore (DSO) plans at the Goulamina Lithium Project in the West African country. It advised:
The Company seeks the trading halt pending an announcement in relation to correspondence from the government of Mali relating to plans to produce Direct Shipped Ore.
Today's suspension request has similar wording. It states:
The Company requests a voluntary suspension pending an announcement in relation to correspondence from the government of Mali. The Company anticipates that the voluntary suspension will end upon the Company releasing the above announcement, which is anticipated to occur on or before Thursday, 27 July 2023.
What's happening?
What is happening behind the scenes is impossible to say. But it is worth highlighting that Reuters recently reported that the Malian government was looking at bringing in a new mining law in the near future. It said:
The draft, dated June 17 and verified by three sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments. It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.
Nothing has been confirmed as of yet. But, as they say, where there's smoke, there's fire.
And while giving up a stake to the government would be disappointing and have implications for its valuation, I'm sure shareholders would rather that than deal with the same debacle impacting fellow African lithium developer AVZ Minerals Ltd (ASX: AVZ). Its shares have been suspended for over a year.
Stay tuned for Leo Lithium's announcement next week.
