TORONTO, Aug. 18, 2017 /CNW/ - LeadFX Inc. (the
"Company" or "LeadFX") (TSX: LFX) today
announced that each of Enirgi Group Corporation ("Enirgi
Group") and Enirgi Group Services Australasia Pty Ltd.
("EGSA"), a wholly owned subsidiary of Enirgi Group, have
provided the Company and Rosslyn Hill Mining Pty Ltd.
("RHM"), respectively, notice to terminate their respective
management services agreement (the "Management Services
Agreements"), following a transition period of up to 90
days. In addition, the board of directors (the "Board")
of the Company has accepted Mr. Robert
Metcalfe's resignation as director and Chairman of the
Company.
On December 12, 2012,
LeadFX entered into a management services agreement (the
"Enirgi Management Services Agreement") with Enirgi Group and,
concurrently, RHM entered into a separate management services
agreement with EGSA (the "EGSA Management Services
Agreement") in connection with Enirgi Group being the majority
shareholder of LeadFX at that time. Under the Enirgi
Management Services Agreement, Enirgi Group manages the business
and affairs of LeadFX and provides the necessary employees
and officers responsible for (among other things) general
management and executive services, including strategic and business
planning functions, accounting, treasury and other day-to-day
matters. The day-to-day support of the Paroo Station lead carbonate
operation in Western Australia
("Paroo Station"), including oversight and support services
for the care and maintenance program, was provided by EGSA to RHM
under the EGSA Management Services Agreement.
The Management Services Agreements are terminable by either
party on 90 days' prior written notice. The transition period will
provide the Company with a suitable amount of time to work with the
LeadFX Board and its majority shareholder, the Sentient
Group of Global Funds ("Sentient"), to plan a successful
transition; ensuring that the day-to-day management of the
operation and vital key services are satisfied and the business is
operated successfully with a high standard of care, diligence, and
skill going forward.
"LeadFX has had a positive working relationship with Enirgi
Group over the past 5 years and the Agreements delivered
significant cost savings to LeadFX and RHM whilst the Company
leveraged the wealth of experience, industry know-how and positive
reputation that the global Enirgi Group team had to offer,"
said Rob Scargill, President and CEO
of LeadFX. "LeadFX transitioning towards managing its own
affairs is a natural next step as the Company works with our new
technology partner, InCoR Technologies Limited and InCoR
Energy Materials Limited (together "InCoR") to
complete a DFS to determine the viability of applying InCoR's oxide
technology to a hydrometallurgical facility at Paroo
Station."
"On behalf of the Company and myself, I would like to express
our gratitude to Bob Metcalfe for
his valuable input and counsel as both a Director and as
Chairman." noted Mr. Scargill.
The termination of the Management Services Agreements will
result in changes to the officers of the Company that are currently
employed by Enirgi Group, including the President and Chief
Executive Officer, Chief Financial Officer, Vice President of Legal
& Corporate Secretary and Vice President of Investor Relations.
RHM continues to directly employ 12 individuals and 3 contractors
as part of the complement of staff managing the care &
maintenance of Paroo Station. Going forward, the Company will
update the market as necessary as it relates to appointments to the
Board and of key management.
Copies of the Management Services Agreements are available on
the Company's SEDAR profile at www.sedar.com.
About LeadFX
LeadFX is a Canadian-based mining company focused on the
development of lead-silver projects located in stable
jurisdictions. Our current portfolio includes a restart-ready lead
operation in Western Australia and
a development project in Utah,
USA. The Company continues to seek opportunities at its new
properties in North America to
underpin future cash flow and growth. LeadFX trades under
the symbol "LFX" on the Toronto Stock Exchange.
Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of applicable Canadian securities
laws. Examples of forward-looking information in this news
release includes but is not limited to statements and information
concerning: the completion of the definitive feasibility study and
the ability to effectively transition the services under the
Management Services Agreements. Forward-looking statements are
often, but not always, identified by the use of words such as
''seek'', ''anticipate'', ''contemplate'', ''target'', ''believe'',
''plan'', ''estimate'', ''expect'', and ''intend'' and statements
that an event or result ''may'', ''will'', ''can'', ''should'',
''could'' or ''might'' occur or be achieved and other similar
expressions. Forward-looking information by its nature requires
assumptions and involves known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information, and readers are cautioned not to place
undue reliance on such information. These statements are based on
expectations, estimates and projections as at the date of this news
release and are subject to a number of risks and uncertainties.
Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking information prove
incorrect, actual results, performance or achievement may vary
materially from those expressed or implied by the forward-looking
information contained in this news release. These risk factors
should be carefully considered and readers are cautioned not to
place undue reliance on forward-looking information, which is
current only as of the date of this news release. All subsequent
forward-looking information attributable to LeadFX herein is
expressly qualified in its entirety by the cautionary statements
contained in or referred to herein. LeadFX does not undertake any
obligation to release publicly any revisions to this
forward-looking information to reflect events or circumstances that
occur after the date of this news release or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws.
SOURCE LeadFX Inc.