Leo Lithium, Ganfeng Lithium ink deal for Goulamina project in Mali
Leo Lithium Ltd, has entered into a binding agreement with a subsidiary of China’s Ganfeng Lithium Group Co Ltd that will see the two raise US $72M in funding for the development of Leo Lithium’s Goulamina project in Mali.
As part of the cooperation deal, Leo Lithium and Ganfeng will conduct a study to explore the possibility of expanding the production capacity of Goulamina Stages 1 and 2 to 1 million tonnes per annum. Leo Lithium stated that they will also jointly finance a feasibility study for a downstream conversion facility in Europe or other locations near West Africa. Additionally, the two companies will establish an exploration joint venture, with an initial focus on Australia.
Goulamina project
To facilitate the agreement, Leo Lithium will issue 131 million shares to Ganfeng’s subsidiary, GFL International Co Ltd, at a price of A$0.81 per share. This issuance represents an 11.7% premium to Leo Lithium’s stock’s last closing price on May 26. Upon the completion of the share placement, Ganfeng will hold a 9.9% stake in Leo Lithium.
Located 195 km by road south of Bamako, Mali’s capital, Goulamina will be the first hard rock lithium mine in West Africa and will rank as one of the world’s largest spodumene projects, with a forecast annual production of spodumene concentrate of 506 000 tpa in Stage 1, rising to 831 000 tpa under Stage 2. The high-grade lithium resource at the site is one of the largest in the world, with the mineral resource sitting at 108 Mt at 1.45% Li2O and the mineral reserve at 52 Mt at 1.51% Li2O.
