Bradda Head reaches settlement over fraudulent payment

North America-focussed lithium developer Bradda Head announced on Monday that it has reached a settlement agreement over the fraudulent payment initially reported on 29 March 2022.

The AIM-traded firm subsequently disclosed the fraudulent transaction in its audited financial statements for the years ending February 2022 and February 2023.

It said the settlement entailed a partial reimbursement of the misappropriated funds, aligning with Bradda Head's expectations when it initiated enforcement proceedings.

The company said it would recover about 40% of the total funds lost to the fraud.

It said the agreement stipulated that neither party admitted liability, with the full commercial terms of the settlement remaining confidential.

Bradda Head added that it would not provide further comments on the matter due to those confidentiality obligations.

“Bradda Head is pleased that this matter is now settled and closed, with full attention focused on completing the ongoing Basin Project drilling programme, with an update provided on 17 April,” the board said in its statement.

At 1105 BST, shares in Bradda Head Lithium were up 5.33% at 1.58p.

Reporting by Josh White for Sharecast.com.