Magontec reaches settlement with QSLM

Magontec (ASX:MGL) has resolved its outstanding issues with Qinghai Salt Lake Magnesium Co Ltd (QSLM) by signing a Memorandum of Settlement. This agreement includes the buyback and cancellation of 22.68 million shares, which represent 28.48% of Magontec's issued shares held by QSLM. The resolution is subject to shareholder approval at an upcoming Extraordinary General Meeting.

Overview and future steps for Magontec

Magontec Limited has reached a significant milestone by resolving disputes with its largest shareholder, Qinghai Salt Lake Magnesium Co Ltd, through a Memorandum of Settlement. This agreement involves the buyback of 28.48% of the company's issued shares, pending shareholder approval. The approval from QSLM's creditors and a court in Xining, Qinghai province, has already been obtained. The company plans to hold an Extraordinary General Meeting to finalize the buyback, enhancing its strategic flexibility. This development marks a positive step forward in Magontec's corporate strategy, aiming to better align with shareholder interests.

Executive commentary on settlement

Nicholas Andrews, CEO and Executive Chairman, expressed satisfaction with the resolution and highlighted its significance in moving forward constructively for both parties. The execution of the MoS and the associated buyback will enhance the company's flexibility and align its interests more closely with its shareholders.