RE: Leo16 Aug 2021 09:05
ASX ANNOUNCEMENT
Monday, 16th August 2021
Introducing Leo Lithium - The Next Global Lithium Producer of Significant Scale
Agreements Executed with Ganfeng
• Full form legal agreements executed with Ganfeng - a key step in completing the up to US$194m Goulamina JV Transaction.
• Lycopodium engaged to update Goulamina Definitive Feasibility Study and incorporate plant & process optimisation agreed with Ganfeng to support a Final Investment Decision (FID).
• Firefinch and Ganfeng have agreed on expediting FID, targeting the December Quarter, 2021.
• Demerger of Goulamina will follow FID to form a new ASX-listed company (Leo Lithium Limited)
– demerger completion expected during the March Quarter, 2022.
• Only Firefinch shareholders will receive an in-specie distribution of shares at no cost in Leo Lithium Limited.
• Firefinch shareholders will also have the right to subscribe for additional shares under a planned entitlement offer prior to ASX listing.
• First production from Goulamina to be accelerated, now expected in 2023.
Firefinch Limited (ASX: FFX) (Firefinch or the Company) is pleased to announce the Company and a wholly owned subsidiary of Jiangxi Ganfeng Lithium Co. Ltd (Ganfeng) have executed a suite of full form legal agreements to progress the 50-50 Firefinch-Ganfeng incorporated joint venture (JV) at the Goulamina Lithium Project (Goulamina, together, the Goulamina JV Transaction).
The Company is also pleased to advise the new ASX-listed lithium-focused entity will be called Leo Lithium Limited (Leo Lithium). The name Leo was chosen as the lion is an iconic African animal, commonly referred to as “King of the Beasts”, and known for demonstrating strength, authority and fierce pride loyalty – fitting for a company run for its shareholders. The components of Lion, Li-ion and the connection to Africa, are very appropriate for a company with a world-class Malian lithium asset. Sundiata Kieta, the founder of the Malian empire in the 13th century was known as the Lion of Mali.
On listing, Leo Lithium is expected to be a leader in the ASX lithium landscape:
• Goulamina will be the next large scale global lithium hard rock project to enter production, and the first of its kind in West Africa, with production targeted for 2023.
• A partnership with the world’s largest lithium chemicals producer Ganfeng, which has committed to taking up to 100% of the spodumene concentrate produced from Goulamina.
• Substantially funded to production with total funding commitments of up to US$194 million.1
• Prior to listing, Goulamina is expected to have reached FID and commenced engineering and
preliminary works.
1 As previously announced, in addition to its US$130 million equity investment, Ganfeng will arrange debt funding of up to US$64 million to support project development. The debt quantum provided is expected to be between US$40 to US$64 million depending on whether Ganfeng provides the debt or arranges the debt, respectively.
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