Why are Leo Lithium shares still not trading?

The wait continues…

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Leo Lithium Ltd (ASX: LLL) shares remain voluntarily suspended on Tuesday after the lithium developer requested a second extension.

Leo Lithium shares have not traded since 18 July when the company requested a trading halt after receiving correspondence from the military-led Mali Government.

The correspondence relates to Leo Lithium's plans to export direct shipped ore (DSO) from the Goulamina Lithium Project.

Two days later, Leo Lithium asked for a voluntary suspension until 27 July, revealing its discussions with the government were incomplete and it needed more time.

Today's request for a second extension contains similar wording.

Leo Lithium says it will make an announcement in relation to the matter on or before 21 August.

Nervous wait for Leo Lithium shares investors

As my Fool colleague James has previously reported, a number of African countries have banned DSO exports recently. They've done this because they want the ore processed locally to create jobs.

There have been media reports about potential changes to mining laws in the West African country. 

Reuters recently reported:

[T]hree 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.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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