Firefinch (ASX:FFX) spinoff Leo Lithium has closed its $100M IPO oversubscribed following ‘strong support’ from shareholders.
The company notes that over 90% of the offer was allocated to existing Firefinch shareholders, with no application under $2,000 scaled back.
The proposed demerger was approved by shareholders, during a general meeting on Tuesday.
Leo Lithium, which is helmed by respected industry figure Simon Hay, is the owner of the ‘world class’ Goulamina Lithium Project in Mali.
“The proposed demerger remains conditional upon shareholder approval, with a general meeting scheduled for late Tuesday”
The company has received strong finance and offtake support from Chinese Giant Ganfeng, which has committed a USD $170M debt and equity funding package, with $130M already in place.
Goulamina is a 100km² land holding consisting of ‘very prospective’ hard rock lithium pegmatites in southern Mali, some 150km by road from the country’s capital, Bamako.
A Definitive Feasibility Study published in 2021 outlined a long-life, large-scale open pit operation with a post-tax NPV of AUD $4.1 billion.
Images: Firefinch Ltd
