PERTH (miningweekly.com) – Lithium spin-off Leo Lithium on Thursday started share trading on the ASX under the code LLL.
The listing followed a successful initial public offering (IPO) in May, during which Leo raised A$100-million through the issue of 142.9-million shares at a price of 70c each.
Leo currently has 1.19-billion shares on issue.
Leo Lithium is a spin-off from fellow-listed Firefinch, and holds the Goulamina lithium project, in Mali, in a joint venture (JV) with Chinese partner Jiangxi Ganfeng Lithium.
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.
“It is a very exciting day for Leo Lithium as we commence trading on the ASX as our own listed entity following the demerger from Firefinch. I would like to personally welcome all shareholders to the register - thank you for your support. I would also like to acknowledge the exceptional work and support from our board, advisers, Firefinch and Ganfeng to achieve this demerger and IPO,” said Leo Lithium MD Simon Hay.
“We have a highly dedicated and experienced team who are determined to deliver real value for shareholders, as well as our employees and the community in which we operate.
“We have an exciting journey ahead as we work to realise the full potential of Goulamina and bring the project into production, alongside our JV partner Ganfeng. We have wasted no time in getting started, with development already underway, including the 2022 drilling programme, procurement of long-lead items and commencement of roadworks. Socialisation with local communities is also well advanced. I look forward to keeping shareholders updated of our progress as we fast-track Goulamina into production.”
Leo is targeting first spodumene concentrate production from Goulamina in the first half of 2024.