ASX-listed Leo Lithium has acquired conditional approval from the Mali authorities for the sale of its remaining 40% stake in Mali Lithium BV (MLBV) to China’s Ganfeng, a important step within the firm’s exit from the Goulamina lithium challenge.
The Mines Minister has conditionally authorised the transaction, requiring the submission of transaction paperwork and fee of capital positive factors tax (CGT). Leo has already paid $7.6-million for CGT on a 5% sale finalised on Might 6. Any further CGT on the 40% sale will likely be paid in the end.
Leo introduced final month that it had agreed to promote its remaining curiosity in MLBV, having failed to achieve an settlement with the federal government over points regarding the challenge.
Commenting on the federal government approval, Leo MD Simon Hay stated that it was a constructive step within the course of for the corporate’s eventual exit from the challenge.
“Whereas our most well-liked consequence would have been for Leo to stay concerned in Goulamina, we imagine within the absence of a viable settlement with the Mali authorities, this plan of action is in the most effective curiosity of all stakeholders,” he stated.
Goulamina is likely one of the greatest lithium developments globally. Stage 1 spodumene focus manufacturing is estimated at 506 000 t/y, growing to a peak of 880 000 t/y in Stage 2.
The challenge is anticipated to have a minimal mine lifetime of 23 years, producing 15.6-million tonnes of spodumene focus over that interval.
The Chinese language group pays Leo $342.7-million for the remaining stake in Goulamina.
With Ganfeng ultimately transferring to full possession of MLBV, the three way partnership companions determined Ganfeng would assume administration duties of the challenge this month, previous to the completion of the sale. As Ganfeng remains to be constructing its operational workforce, the companions additionally agreed that Ganfeng would have interaction Leo underneath a providers settlement to offer administration providers to the group for as much as six months, ending on November 13, on the newest.
