21.8 C
Supported byspot_img

Leo Lithium Enters Strategic Cooperation Agreement with Ganfeng Lithium

Member of Europium Groupspot_img
Supported byspot_img

Leo Lithium, a prominent player in the lithium industry, has recently signed a binding agreement with Ganfeng Lithium, securing a substantial investment of $106 million.

This agreement involves the issuance of 131 million new fully paid ordinary shares, equivalent to 9.9% of Leo Lithium’s total pro-forma shares on issue.

The proposed strategic placement and the key terms of the cooperation agreement stand as a testament to the strong partnership between Leo Lithium and Ganfeng Lithium, particularly in their joint venture at Goulamina.

Supported by

Simon Hay, the Managing Director of Leo Lithium, expressed his enthusiasm for the transformative opportunities presented by this agreement, stating that it further validates the exceptional quality and potential of Goulamina.

The strategic placement was priced at an attractive premium, reflecting a 6.5% increase over the company’s 5-day VWAP and coming just shy of the all-time share price high.

With the settlement of this agreement, Leo Lithium will be fully funded for the development costs and operational ramp-up of Goulamina Stage 1.

This financial backing will also position the company favorably to advance its co-commitment activities with Ganfeng. One of the conditions of the strategic placement is the signing of a binding cooperation agreement between Leo Lithium and Ganfeng.

This agreement offers Leo Lithium numerous strategic benefits, including a commitment to expand capacity at Goulamina Stage 2 and the establishment of a framework for cooperation on a downstream conversion facility and other business prospects.

The proposed tolling arrangement with Ganfeng provides Leo Lithium with a low-risk opportunity to gain exposure to lithium hydroxide production and benefit from the attractive margins associated with downstream activities.

Ganfeng, a renowned player in the lithium industry, operates several conversion facilities in China and already produces a significant volume of high-quality battery-grade lithium products supplied to top-tier OEMs.

By leveraging the tolling arrangement with Ganfeng, Leo Lithium anticipates leveraging Ganfeng’s market relationships and technical expertise, thereby achieving cost savings and operational efficiencies in tolling Goulamina Stage 2 products into lithium hydroxide.

This partnership marks an exciting chapter for Leo Lithium, as they have several near-term milestones in progress. These include the expected release of their first spodumene product in 2024 and accelerated revenue from direct shipped ore, with shipments planned for the fourth quarter of this year.

Leo Lithium is proud to collaborate with Ganfeng, a globally recognized leader across the lithium value chain. They are committed to building upon their already strong relationship and look forward to the future growth and success it will bring.


Source: Battery Metals Africa


Supported byElevatePR Digital

Related News

Mali signs lithium mining agreement with Ganfeng, eyes revenue boost

Earlier this week, Mali's economy minister announced a significant deal with China's Ganfeng Lithium regarding the operation of the Goulamina lithium mine. Under the...

Final legal discussions underway for EU-Serbia lithium trade partnership

Commissioner Maroš Šefčovič revealed that the final legal obstacles are being addressed before the EU-Serbia trade partnership, focused on sourcing lithium from the Jadar...

IEA analysis calls for greater investment despite 2023 drop in clean energy mineral prices

Prices for key minerals used in clean energy technologies fell in 2023 as supply outpaced demand, easing pressure on the market. However, a new...

EQ Resources surpasses production records despite cyclone challenges

Despite recovering from the impact of cyclone Jasper, EQ Resources (EQR) celebrates a milestone in tungsten production at its Mount Carbine mine in Queensland....
Supported by
Supported by
Supported by
error: Content is protected !!