Leo Lithium sells Mali project stake to China's Ganfeng for $342 mln (updated)

Leo Lithium

08/05/2024 01:39

(Updates with further details on the deal, settlement with Mali
government)
       May 8 (Reuters) - Leo Lithium  LLL.AX  has signed an
agreement with China's Ganfeng Lithium  002460.SZ  to sell its
remaining 40% stake in a mine in Mali for $342.7 million, the
Australian miner said on Wednesday.
    The West Perth-based company also signed a memorandum of
understanding to settle all outstanding issues with Mali for $60
million, including the government's free carry stake in the
Goulamina lithium project.
    Leo Lithium decided to sell the stake after it tried to
reach a "viable agreement" with the Mali government, it said,
adding that the risks associated with operating in Mali and the
impact of new mining code meant selling the stake was in the
best interests of its shareholders.
    The implementation of the new mining code in Mali means the
government's potential stake in the Goulamina project will
likely rise to 30% from 20% previously, with a further 5% stake
likely going to a local entity.
    "The board believes the executed sale and purchase agreement
with Ganfeng provides our shareholders with certain value under
highly challenging circumstances," the Australian miner said.
    Leo Lithium reiterated that the project was on track to
produce its first spodumene in the third quarter of 2024.
    

 (Reporting by Rajasik Mukherjee; Editing by Rashmi Aich and
Subhranshu Sahu)
 ((Rajasik.Mukherjee@thomsonreuters.com;))