Global Lithium appoints new CEO in push to develop frozen project (updated)

Global Lithium Resources

14/02/2025 24:49

(Adds details throughout)
    By Melanie Burton
       MELBOURNE, Feb 14 (Reuters) - Global Lithium Resources
 GL1.AX  has appointed Dianmin Chen to run the company, after
its executive chairman stepped down and shareholders approved a
new board that wants to go ahead with developing its key lithium
project in Western Australia. 
    Former Executive Chairman Ron Mitchell had turned to
regulators to try to stop what he alleged was an undisclosed
association among China-linked shareholders unlawfully seeking
to take control of the company and its Manna lithium project.
    Management froze development of the project late last year
amid a protracted downturn in the battery raw material market,
but some of Global Lithium's biggest shareholders opposed the
company's strategy.
    The battle posed a test for the Australian government which
is pushing for critical minerals projects to drive economic
growth and boost security links with the United States, its key
global ally, while not wanting to anger its top resources
customer, China.
    Following Thursday's board overhaul, the company said it
will prioritise finalising a native title mining agreement with
the Kakarra Part B Native title group, ahead of seeking a mining
lease and completing a financial feasibility study. 
    It said it is also seeking a new chairman as it looks to
"rebuild trust" with potential project partners. A 10-year
supply agreement with China lithium chemicals maker Canmax
Technologies  300390.SZ  expired in December.
    Mitchell tendered his resignation and former chief financial
officer Matthew Allen withdrew his nomination for director on
Thursday after it became apparent the Australian government was
not going to intervene to stop the vote.
    He had alleged China-linked shareholders may have violated
Australia's takeover laws and the foreign takeovers act in
reports to Australia's Treasury last year as well as in filings
to the Australian Securities Exchange, the Western Australian
Supreme Court, and Australia's Takeovers Panel.
    The Takeovers Panel twice declined to review the
allegations, but Australia's Treasurer was still keeping a close
eye on the situation, The Australian newspaper reported.
    The Treasurer's office did not immediately respond to a
request for comment. 
    Global Lithium shareholders backed Perth-based businessman
Liaoliang (Leon) Zhu, who controls the company's third largest
shareholder Sincerity Group, and mining executive Xiaoxuan
(David) Sun, to join the board, the company said in an exchange
filing.
    Both Chen and Zhu are Australian citizens, the filing said. 
    

 (Reporting by Melanie Burton; Editing by Chris Reese and Sonali
Paul)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
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