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.
Write to Adam Orlando at Mining.com.au
Images: Leo Lithium
