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Firefinch Receives $170M for Lithium JV

Gold producer Firefinch Ltd has received $170 million in funding from Ganfeng for their Leo Lithium demerger.


The Goulamina lithium deposit is within the top 5 largest hard rock lithium deposits in the world. The largest lithium chemical producer in the world (Ganfeng) has provided $170 million dollars in funding for their joint venture partner to demerge their lithium deposit later this year.


All conditions precedent for Ganfeng’s investment into the Goulamina Project have now been met following the final transfer of the Goulamina Mining Exploitation License:


· US$130 million in cash to flow to the JV Company, US$39 million of which will be released to the JV Company and a further US$91 million to be transferred by Ganfeng in the next few days

· Ganfeng will also provide a further US$40 million in debt or source US$64 million in third party debt

· Firefinch is now positioned to finalise the demerger of Goulamina into Leo Lithium Limited in accordance with the timeframe determined by ASIC


In a few weeks, Firefinch will issue a definitive timeline for release of the Notice of Meeting and accompanying short form prospectus. If the Demerger is approved by Firefinch shareholders, Leo expects to undertake a pro-rata entitlement offer and seek admission to the official list of ASX.


Firefinch shares ending the day trading at 0.97 cents per share, returning 350% in the last twelve months.