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Leo Lithium (ASX:LLL) is getting a cash injection with the sale of its interest in the Goulamina Lithium Project (GLP) to Ganfeng. That comes through the offloading of a 40% stakeholding in Mali Lithium BV to the latter, which serves to see Leo no longer tied to the project by any measure.
Leo will pick up US$116.3 million (nearly A$180 million) Net Tranche 1 cash consideration deliverable in January 2025.
“The total amount of Mali capital gains tax payable on the sale is US$44.7 million which has been deducted from the gross consideration payable of US$161 million and has been paid directly to the Mali Government by Ganfeng,” Leo wrote on Wednesday.
(How charming for Mali’s government, and how gracious of Ganfeng – for those uninformed, a massive Chinese lithium player.)
Taxes are in line with earlier estimates announced to market, Leo stated on Wednesday. A further Trance 2 payment of US$171.2M is payable by June 30, 2025 (with an interest rate of 2% until then.)
This comes after the stock has been suspended ever since October 2023 when a by-then-already collapsed lithium price sent shockwaves throughout the industry.
Funds will be distributed to shareholders in January of next year.
Investors will get a look at the company’s half year finances now the deal is complete.
“As a consequence of completion occurring, the company is now in a position to finalise and publish its financial results for the half-year ended 30 June 2024. It is anticipated that these results will be published in early December,” the company wrote.
LLL last traded at 50cps and is currently suspended.
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