Australia-listed Leo Lithium has announced it is exiting the Goulamina project, in Mali, with the sale of its remaining 40% interest to joint venture (JV) partner Ganfeng.
The Chinese group will pay Leo $342.7-million for the remaining stake in Goulamina.
Leo previously entered into an agreement to divest a 5% stake in Goulamina to Ganfeng for $65-million to fund a settlement agreement with the Mali government.
“Despite our best efforts to reach a viable agreement with the Mali government and considering the increasing risks associated with operating in Mali, the impact of the new 2023 Mining Code and the company’s financial position for future funding, the board of Leo Lithium has determined that a sale of the company’s remaining interest in Goulamina is in the best interests of Leo Lithium shareholders,” said MD Simon Hay.
Ganfeng will pay the consideration, which equates to A$0.43 a share, to Leo in cash.
Goulamina is one of the biggest lithium developments globally. Stage 1 spodumene concentrate production is estimated at 506 000 t/y, increasing to a peak of 880 000 t/y in Stage 2.
The project is expected to have a minimum mine life of 23 years, producing 15.6-million tonnes of spodumene concentrate over that period.