Australia’s Leo Lithium has finalized its exit from the Mali joint venture (JV) with Chinese group Ganfeng, marking the conclusion of its sale of the remaining 40% stake in Mali Lithium BV (MLBV) and the Goulamina project. The transaction, completed on November 26, is expected to deliver returns to investors in January 2025.
As part of the sale, Leo Lithium received net cash proceeds of $116.3 million for Tranche 1, converted into Australian dollars. y
The total gross consideration for the deal was $161 million, from which $44.7 million in capital gains tax was deducted. The tax, paid directly to the Malian government, was settled by Ganfeng in line with prior arrangements.
While the MLBV share transfer is complete, some administrative procedures remain for final registration. A further payment of $171.2 million is due by June 30, 2025, accruing interest at the secured overnight finance rate (SOFR) plus 2%.
Leo Lithium plans to distribute a portion of the proceeds to shareholders, including the $116.3 million, a $10.5 million deposit, and an A$11.5 million contribution from Firefinch. The distribution is scheduled for January.
The Goulamina project is one of the world’s largest lithium developments. Stage 1 spodumene concentrate production is projected at 506,000 tonnes per year, rising to 880,000 tonnes per year in Stage 2. With a mine life of at least 23 years, the project is set to produce 15.6 million tonnes of spodumene concentrate.
