- Firefinch (FFX) sells over 28 million shares in Leo Lithium (LLL) after market close on Monday
- The company sold the shares for 45.5 cents each, pocketing $12.9 million
- Last month, Firefinch purchased $20 million worth of Leo Lithium shares for 70 cents per share as part of Leo’s initial public offering
- The remaining 210.9 million shares the company holds in Leo are subject to escrow until June 23, 2024
- FFX shares are in a voluntary suspension until the end of July and last traded at 20 cents.
Firefinch (FFX) has sold 28.6 million shares in its recently-demerged entity, Leo Lithium (LLL), in an aftermarket deal on Monday.
The gold miner sold the LLL shares for 45.5 cents per share, resulting in a cash injection for Firefinch of $12.9 million.
The remaining 210.9 million shares Firefinch holds in Leo are subject to escrow until June 23, 2024.
Last month, Firefinch purchased $20 million worth of shares in Leo Lithium for 70 cents per share as part of Leo’s initial public offering (IPO).
However, on Monday, Firefinch said it was facing funding issues, insufficient production levels and delays at its flagship Morila mine in Mali.
Production is falling short to around 13,300 ounces due to a lack of equipment, which has further impacted the company’s plans to ramp up activities at the mine.
Firefinch has withdrawn its previous 2022 production guidance and said it would provide a new one when it becomes available.
FFX shares are in a voluntary suspension until the end of July and last traded at 20 cents.