Firefinch (ASX:FFX) receives $39m first tranche of equity

• Firefinch (FFX) has received its first tranche of equity from Jiangxi Ganfeng Lithium Co to develop the Goulamina Lithium Project in Mali
• Ganfeng and Firefinch formed a joint venture to develop the project, with Ganfeng to contribute US$130 million (around A$182 million) in cash, while arranging up to US$64 million (roughly A$89 million) in debt
• Following receipt of Chinese regulatory approvals, the first tranche of equity totalling US$39 million (approximately A$54 million) was deposited by Ganfeng into an escrow account
• Meanwhile, Firefinch says its updated definitive feasibility study and a final investment decision for Goulamina remain on track for late 2021
• Firefinch shares last traded at 70.5 cents on November 30

Firefinch (FFX) has received its first tranche of equity from Jiangxi Ganfeng Lithium Co to develop the Goulamina Lithium Project in Mali.

Ganfeng and Firefinch formed a joint venture to develop the project, with Ganfeng to contribute US$130 million (around A$182 million) in cash to the joint venture, while arranging up to US$64 million (roughly A$89 million) in debt.

Following receipt of Chinese regulatory approvals, the first tranche of equity totalling US$39 million (approximately A$54 million) was deposited by Ganfeng into an escrow account.

Once a restructure of the company’s corporate structure has been completed to separate its lithium activities from its gold activities, the project exploitation licence will be transferred to the joint venture and the cash will be released from escrow.

The transfer is expected to be completed in early 2022.

Firefinch is completing a definitive feasibility study update, which will consider a stage two expansion. This will involve a 75 per cent increase in production capacity for 2.3 million to 4 million tonnes per annum.

As such, spodumene concentrate production would increase from 450,000 tonnes per annum in line with the planned throughput upgrade. This move will place Goulamina among the largest producers globally.

 Firefinch said its updated definitive feasibility study and a final investment decision for Goulamina remain on track for late 2021.

Firefinch shares last traded at 70.5 cents on November 30.