- Firefinch (FFX) and Ganfeng Lithium propose to list ‘Leo Lithium’ as a new company to host assets under their recently announced Goulamina Lithium Project joint venture
- Following a projected final investment decision later this year, ‘Leo Lithium’ would make its ASX debut in early 2022
- Full form legal agreements have been executed for Ganfeng to secure its 50 per cent stake, valued at around A$169 million
- It’s hoped the expedited agreement will allow the companies to capitalise on a “prevailing” lithium market and have production underway for 2023
- Firefinch shares are down 3.15 per cent at 1:51 pm AEST to trade at 55 cents
Firefinch (FFX) and Ganfeng Lithium are proposing to list ‘Leo Lithium’ as a new company to host assets under their recently announced Goulamina Lithium Project joint venture.
Subject to necessary shareholder and regulatory approvals, Firefinch’s wholly owned subsidiary Timbuktu Resources and China’s largest lithium producer will debut ‘Leo Lithium’ on the ASX in March 2022.
The announcement was accompanied by confirmation that full form legal agreements have been executed for Ganfeng to secure its 50 per cent ownership in the Firefinch-Ganfeng incorporated joint venture.
In June the parties inked a binding term sheet to bring the world-class lithium project into production back and revealed Ganfeng would become a joint venture partner in the project for US$130 million (around A$169 million).
The Goulamina Project is currently held by Firefinch’s wholly owned subsidiary, Timbuktu Resources SARL. It comprises a 100 square kilometres landholding of hard rock lithium pegmatites in the Bougouni Region of southern Mali.
According to Firefinch, the parties are targeting a final investment decision for the 2021 December quarter.
It’s hoped the expedited agreement will allow the companies to capitalise on a “prevailing” lithium market and have production under way for 2023.
Ganfeng has pledged up to US$194 million (A$263 million) to the project and committed to taking up 100 per cent of spodumene concentrate produced from Goulamina, according to FFX.
Firefinch Managing Director Michael Anderson said the remaining conditions precedent to the Ganfeng deal were well under way.
“Off the back of a positive final investment decision, we will be in a very strong position to demerge Goulamina into a dynamic new ASX-listed lithium player, Leo Lithium, and list in early 2022,” he said.
“On completion of the entitlement offer and listing, Leo Lithium is expected to have a fully funded interest in a global scale lithium development with pre-production engineering under way and imminent commencement of construction.”
Mr Anderson said all Firefinch shareholders would receive a pro-rata entitlement to Leo Lithium shares.
Firefinch shares are down 3.15 per cent at 1:51 pm AEST to trade at 55 cents.