Leo Lithium completes exit from Mali JV, shareholders in line for dividend
Australia’s Leo Lithium has completed its exit from the Mali joint venture (JV) with Chinese group Ganfeng, with the company having crossed the final hurdles in its sale of the remaining 40% stake in Mali Lithium BV (MLBV), and therefore the Goulamina project. With the sale now wrapped up, investors are expected to see returns in just over a month.
Leo confirmed the completion of the MLBV sale on November 26. As part of the transaction, the company has received the net cash consideration for Tranche 1, amounting to $116.3-million, which has been converted into Australian dollars.
The total gross consideration for the sale is $161-million, from which $44.7-million in capital gains tax, payable to the Mali government, has been deducted. Ganfeng has directly settled this tax obligation, in line with earlier projections provided by Leo Lithium.
While the MLBV share transfer has been completed, some procedural steps to finalize the registration will take place after the completion date.
Under the terms of the share sale agreement, a further payment of $171.2-million is due by June 30, 2025. This payment will accrue interest from the completion date at the secured overnight finance rate +2%.
Leo said it would distribute a portion of the Tranche 1 proceeds, including the $116.3-million, a $10.5-million deposit, and a A$11.5-million contribution from Firefinch, to shareholders in January.
Goulamina is one of the biggest lithium developments globally. Stage 1 spodumene concentrate production is estimated at 506 000 t/y, increasing to a peak of 880 000 t/y in Stage 2. The project is expected to have a minimum mine life of 23 years, producing 15.6-million tonnes of spodumene concentrate over that period.
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