Australia's Leo Lithium signs deal with China's Ganfeng Lithium to raise $72 mln (updated)

Leo Lithium

29/05/2023 01:30

(Adds details on the agreement, capital raising)
       May 29 (Reuters) - Australia's Leo Lithium Ltd  LLL.AX 
said on Monday it signed a binding agreement with a unit of
China's Ganfeng Lithium Group Co Ltd  002460.SZ  to raise
A$106.1 million ($72 million) and to cooperate for the ramp-up
of its Goulamina project in Mali.
        Under the cooperation deal, Leo Lithium and Ganfeng will
also undertake a study into expanding the combined production
capacity of Goulamina Stages 1 and 2 to 1 million tonnes per
annum, the company said in a statement.
        The parties will also fund a feasibility study for a
joint downstream conversion facility in Europe or other
locations close to West Africa, and form an exploration joint
venture with an initial focus on Australia.
        The lithium miner said it will issue 131 million shares
to Ganfeng's unit GFL International Co Ltd at an issue price of
A$0.81 per share, representing an 11.7% premium to the stock's
last closing price on May 26.
        On completion of the placement, Ganfeng will hold a 9.9%
stake in Leo Lithium.
    
 
    ($1 = 1.4743 Australian dollars)

 (Reporting by Echha Jain in Bengaluru; Editing by Himani Sarkar
and Sherry Jacob-Phillips)
 ((Echha.Jain@thomsonreuters.com;))