PERTH (miningweekly.com) – The shareholders of lithium developer Jiangxi Ganfeng Lithium Co have approved a 50% acquisition of the Goulamina lithium project, in Mali, and the formation of a joint venture (JV) with ASX-listed Firefinch.

The two companies earlier this year struck an agreement under which Ganfeng would make a $130-million cash investment in return for a 50% interest in the project vehicle, and would also secure up to $64-million in debt funding that would bring the Goulamina project into production.

“The approval from Ganfeng’s shareholders marks an important milestone for the Goulamina JV transaction and the establishment of our partnership with the world’s largest lithium producer, which will ultimately see Goulamina become the first lithium producer in West Africa,” said Firefinch MD Dr Michael Anderson.

“There are two remaining items to complete the Goulamina JV transaction; Chinese regulatory and Malian government approvals, both of which are well progressed. This is an exciting time for Firefinch shareholders, and we expect an outcome on these items within the next two to three months.”

Anderson noted that one of the two remaining conditions precedent were satisfied, Ganfeng will make an initial $39-million cash investment into the JV, with a further $91-million to be provided shortly after a final investment decision on Goulamina.

The two companies have agreed to expedite the final investment decision to the December quarter of this year, given the strong lithium market dynamics.

A 2020 definitive feasibility study into the Goulamina project estimated that it would require a capital investment of $194-million, and based on a mineral resource of 108.5-million tonnes, grading 1.45% lithium oxide, the project would produce an average of 436 000 t/y of spodumene concentrate over a mine life of 23 years.

The study estimated a pre-tax net present value of some $1.2-billion, and a pre-tax internal rate of return of 55.8%, based on a price of $666/t of concentrate, while the all-in sustaining costs for the project have been estimated at $306/t of concentrate over years one to five of the operation.

First production at Goulamina will be accelerated, and is expected in 2023.