Final proceeds for sale of Goulamina Project received
| Stock | Leo Lithium Ltd (LLL.ASX) |
|---|---|
| Release Time | 3 Jul 2025, 10:42 a.m. |
| Price Sensitive | Yes |
Leo Lithium receives final payment for Goulamina Project
- Received final US$171.2 million payment from Ganfeng Lithium for 40% stake in Goulamina project
- Also received US$6.4 million in interest, bringing total receipts to US$177.6 million
- Evaluating M&A opportunities, may use funds for acquisitions or return to shareholders
Leo Lithium Limited (ASX:LLL) has received the final payment of US$171.2 million from Ganfeng Lithium Group Co. Ltd for the sale of the company's 40% shareholding in Mali Lithium B.V., the holding company of the Goulamina Lithium Project (Tranche 2). The company has also received interest of US$6.4 million on the Tranche 2 payment, making total receipts of US$177.6 million. In April 2025, the company purchased a call option for USD177.0 million to convert the Tranche 2 funds into Australian dollars. The company has previously announced that any decision on the return of Tranche 2 funds to shareholders will be made in connection with M&A activity currently being undertaken by the company. If no M&A opportunities are significantly progressed by Q3 2025, the Tranche 2 funds will be returned to shareholders in the second half of calendar year 2025. The company is steadily advancing a small number of lithium hard rock M&A opportunities and management is optimistic that one will be announced in the current quarter, although there is no guarantee. Any deal announcement will address the company's intended use of Tranche 2 funds, including any distribution to shareholders. It is expected that any shareholder approval and distribution will occur in the second half of calendar year 2025. The company has also advised that Ganfeng's first shipment of spodumene concentrate from the Goulamina Lithium Project has departed the port of Abidjan, Côte d'Ivoire, and a trailing product service fee will be payable to Leo Lithium on this material in the fourth quarter of 2025.
The company is evaluating M&A opportunities and may use the Tranche 2 funds for acquisitions or return them to shareholders. If no M&A opportunities are significantly progressed by Q3 2025, the Tranche 2 funds will be returned to shareholders in the second half of calendar year 2025.