Ganfeng completes 5% Goulamina purchase from Leo Lithium

Leo Lithium (ASX:LLL) has received US$5 million ($7.5 million) from GFL International (Ganfeng) as the final part of the sale of the former’s 5% interest in the Goulamina Project in Mali.

US$10.5 million has been received from Ganfeng as a non-refundable deposit for the sale of Leo Lithium’s remaining 40% interest in Goulamina, valued at US$342.7 million, which will be subject to shareholder approval.

Notice of a general meeting and explanatory memorandum expected to be dispatched in late June 2024.

The 5% sale agreement was conditional (among other matters) upon a settlement being reached with the Mali government. With completion of that settlement, all of the conditions have been satisfied or waived and the 5% sale now completed.

Leo Lithium reports the next instalment will be US$161 million payable on completion of the transaction, following satisfaction (or waiver) of the conditions precedent of the SPA. The final instalment of US$171.2 million plus interest earned at SOFR+2% will be due on 30 June 2025.

The existing JV arrangements will be terminated on completion of the 40% sale.

Leo Lithium remains on track to transfer management responsibility of the project to Ganfeng by 1 June 2024.

It’s expected that Leo Lithium will continue to provide services to the project until November 2024 at the latest.

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Images: Leo Lithium
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Written By Adam Orlando Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.