- Leo Lithium Limited (LLL) strengthens its partnership with Ganfeng through an equity investment agreement and debt facility
- Ganfeng will inject US$137.2 million into the Goulamina JV
- Leo Lithium remains the operator of the JV with a 45 per cent interest
- Construction progress remains on track for first spodumene concentrate in Q2 2024
- Leo Lithium is up 3.03 per cent, trading at 51 cents at 11:25 am AEST
Leo Lithium (LLL) has executed a binding agreement with Ganfeng, establishing the investment structure previously announced to the market on September 4.
Through this agreement, Ganfeng will inject US$137.2 million (A$212.9 million) directly into the Goulamina holding company, Mali Lithium BV (MLBV).
As a result, Ganfeng will receive an additional five per cent interest in MLBV, bringing its total interest to 55 per cent, while Leo Lithium’s interest will remain at 45 per cent.
This investment, the company announced, demonstrates Ganfeng’s continued support for Leo Lithium and the Goulamina project.
Leo Lithium has also initiated the drawdown of its $40 million debt facility with Ganfeng, originally established in July 2022, to fund the Goulamina joint venture.
With this additional funding, the Goulamina JV is now fully funded for the journey to its first production milestone.
“We are extremely pleased to have executed the Equity Investment Agreement with Ganfeng, which cements our solid relationship with China’s largest lithium producer.” Leo Lithium’s Managing Director, Simon Hay, said.
The agreement will involve periodic cash injections into MLBV over the next 4-6 months, aligning with mutually agreed budgets and forecasts.
Leo Lithium was up 3.03 per cent, trading at 51 cents at 11:25 am AEST.