Leo Lithium Limited has announced that it executed a strategic placement and entered into an agreement with GFL International Co. Limited (Ganfeng) to extend the capacity at the Goulamina Lithium Project in Mali to 1 mtpa.
The agreement also includes a framework for further cooperation on a downstream conversion facility and other beneficial business opportunities.
The binding agreement with GFL International will enable Leo Lithium to raise $106.1 million through the issuance of 131 million new fully-paid ordinary shares, representing 9.9% of Leo Lithium’s total pro-forma shares on issue at an offer price of $0.81 per new share.
The offer price represents a 6.5% premium to Leo Lithium’s five-day volume weighted average price of $0.76 per share up to and including 26 May.
The strategic placement is subject to the granting of regulatory approvals in China, as well as the execution of a binding cooperation agreement.
Upon the settlement of the placement, Leo Lithium will be well-capitalised with pro forma 31 March cash of $177 million, in addition to $142.02 million cash and $61.08 million undrawn debt held within the Goulamina joint venture (JV).
The strategic placement and key terms underpinning the proposed cooperation agreement serve as a strong endorsement of Goulamina and the relationship that Leo Lithium has established with Ganfeng as JV partners at Goulamina Project.
According to Leo Lithium Managing Director Simon Hay, the strategic placement and terms of the proposed cooperation agreement represents an opportunity to further validate the quality of Goulamina, including the potential upside of the company’s development pathway.
“The cooperation agreement will deliver a range of key strategic benefits to Leo Lithium, including a commitment to expand the capacity at Goulamina Stage 2, as well as a framework for further cooperation on a downstream conversion facility and other business opportunities,” Hay added.
He stated that the company is proud to be working with Ganfeng, which is recognised across the lithium value chain, and is looking forward to building their relationship.
