Leo Lithium Limited recently announced the signing of a binding agreement to sell a 5% stake in the Goulamina Lithium Project (Goulamina) to GFL International Co., Ltd (Ganfeng) for US$65 million (~AUD$98 million).
Following the completion of the transaction, Ganfeng’s interest in Goulamina will be 60%, while Leo Lithium’s stake will be 40% through Mali Lithium BV (MLBV).
While the Mali Government is yet to take an equity position in Goulamina, ongoing discussions are progressing towards a potential negotiated settlement.
Details of the settlement, including any required payment to the Mali Government, remain confidential at this stage.
Leo Lithium is committed to updating stakeholders as soon as a settlement is reached with the Mali Government, with the anticipation of achieving resolution in the coming weeks.
The US$65 million from the transaction is expected to provide funding for a potential settlement payment.
The payment from Ganfeng will be made in two tranches: Tranche 1 of US$34.8 million upon the execution of settlement documentation with the Mali Government, and Tranche 2 of US$30.2 million 60 days after the payment of Tranche 1. The shares in MLBV will transfer pro rata at the time of the two tranches’ payment.
This agreement solidifies Leo Lithium’s robust partnership with Ganfeng, China’s largest lithium producer. Leo Lithium will continue to operate and manage the Goulamina project, which is making steady progress towards becoming a world-class operation.
Leo Lithium Managing Director, Simon Hay, expressed pride in the partnership with Ganfeng, emphasizing their commitment to the Goulamina project’s success.
Construction is advancing steadily, and the project holds the potential to become a significant player in the lithium industry.
