PERTH (miningweekly.com) – Lithium spin-off Leo Lithium has raised A$100-million in its initial public offering (IPO).

ASX-listed Firefinch on Tuesday said that the IPO, which had comprised a pro-rata offer to eligible Firefinch shareholders, a shortfall offer and an offer to Firefinch, received strong support from Firefinch shareholders and high-quality institutional investors, closing oversubscribed.

Over 90% of the offer was allocated to existing Firefinch shareholders.

Firefinch has acquired its full A$20-million allocation under the Firefinch offer, as part of the IPO.

“We are pleased to have reached this important milestone in the separation of our gold and lithium assets. Subject to shareholder approval, the demerger will allow Firefinch to focus its attention on the development of the world-class, multimillion-ounce Morila gold project, while providing our shareholders with exposure to the future development of Goulamina through our 20% retained stake,” said Firefinch MD Dr Michael Anderson.

Leo Lithium will hold Firefinch’s Goulamina lithium project, in Mali, in a joint venture with Chinese partner Jiangxi Ganfeng Lithium. Under the terms of the demerger, Firefinch shareholders will be entitled to receive one Leo Lithium share for every 1.4 existing shares held in Firefinch at the demerger record date, of June 9.

It is estimated that Goulamina would require an initial $225-million investment for the Stage 1 development, producing 506 000 t of spodumene concentrate a year, increasing to 880 000 t/y in Stage 2, for a further investment of $70-million.

The project is expected to have a minimum mine life of 21 years, producing 15.6-million tonnes of spodumene concentrate over that period.

Leo Lithium’s shares will be allotted under the IPO on June 16, and the company is expected to list on the ASX, and start trading, on June 23.