Leo Lithium has confirmed it has received the final proceeds from the sale of its interest in the Goulamina lithium project in Mali, raising a total of $177.6 million, including interest.
The Perth-based company announced on Thursday that it had received $171.2 million from Chinese lithium major Ganfeng Lithium Group, marking the second and final tranche of payment for its 40% stake in Mali Lithium, the holding company of the Goulamina project. The total includes $6.4 million in accrued interest.
This payment follows Leo Lithium’s exit from the project in late 2023 after failing to reach a resolution with the Malian government over project-related issues.
The first tranche of $161 million was received in November 2023, from which $44.7 million in capital gains tax was paid to the government of Mali.
With its exit complete, Leo Lithium is now actively pursuing merger and acquisition (M&A) opportunities.
The company told investors that M&A remains its top priority and that any decision regarding the return of the Tranche 2 funds to shareholders would depend on the outcome of these potential deals.
“Any decision on the return of Tranche 2 funds to shareholders will be made in connection with M&A activity currently being undertaken by the company,” Leo Lithium said in a statement to the ASX.
“Should a proposed acquisition involve the use of any of the Tranche 2 funds, the company will seek shareholder approval for that acquisition.”
The company added that if no substantial M&A opportunity materializes by Q3 2025, the Tranche 2 funds would be returned to shareholders in the second half of 2025.
Leo Lithium said it is “steadily advancing a small number of hard rock lithium M&A opportunities” and remains optimistic that a deal will be announced during the current quarter.
Any transaction, it noted, will clearly outline how the Tranche 2 funds will be used, including potential distributions to shareholders.
Meanwhile, the company faces an automatic delisting deadline from the ASX on September 19, 2025.
Leo Lithium is currently in discussions with the exchange about a potential relisting, should it complete an acquisition after that date.
“Where completion of an acquisition occurs after the upcoming automatic delisting date of 19 September 2025, the transaction structure will include an application to relist on ASX,” the company said.
“The company has engaged with the ASX on this process although there is no guarantee the ASX will approve any relisting application.”
To mitigate currency risk, Leo Lithium had previously secured a USD call option at an AUD/USD exchange rate of 0.6282 for the expected Tranche 2 amount of $177 million.
The company confirmed it will now exercise this option, locking in the exchange rate and converting the funds to Australian dollars.
The Goulamina project was once Leo Lithium’s flagship asset and is regarded as one of the world’s most significant undeveloped hard rock lithium resources.
Developed in partnership with Ganfeng, the project’s sale now positions Leo Lithium with significant capital at a time when lithium prices have declined sharply from their 2022 highs.
As valuations fall and many junior players struggle with funding, Leo Lithium is well-positioned to pursue acquisition-driven growth in a softer lithium market.
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