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.