RE: Ganfeng16 Jun 2021 08:39
Firefinch and Ganfeng to jointly develop the Goulamina Lithium Project; Ganfeng to provide up to US$194 million of funding
• Binding term sheet executed with Ganfeng to establish a 50:50 joint venture to fast-track development of the world-class Goulamina Lithium Project in Mali in exchange for US$130 million of equity funding into the project
• Ganfeng to arrange debt funding of up to US$64 million to support project development1
• Ganfeng is the world’s largest lithium producer by production capacity with the technical
expertise and the financial capability to support Goulamina development
• Transaction is expected to substantially fund Goulamina’s capital cost to production2
• Detailed engineering and securing of long lead items to commence on closing of transaction and Final Investment Decision expected within 6 months thereafter
• US$2.5 million deposit paid into an escrow account
• Offtake agreement for up to 100% of spodumene concentrate product across the life of mine3
• Mali to benefit from becoming the first West African Lithium producer
Overview
Firefinch Limited (ASX: FFX) (Firefinch) is pleased to announce the execution of a binding term sheet (Term Sheet) with a subsidiary of the world’s largest lithium producer by production capacity, Jiangxi Ganfeng Lithium Co. Ltd (Ganfeng), to establish a 50:50 incorporated joint venture (JV) to develop and operate the world-class Goulamina Lithium Project (Goulamina) (Transaction).
Ganfeng will make cash investments of US$130 million (Subscription Amount). The funds will be invested into Mali Lithium BV (MLB), which will hold Firefinch’s interest in Goulamina and in return, Ganfeng will earn a 50% JV interest in MLB. These funds, together with up to US$64 million in debt funding, which is to be arranged by Ganfeng (Ganfeng Debt), are expected to fund Goulamina into production.1, 2
$64m funding for mine too...
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