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50.5¢ leo lithium limited

Oh I agree, I prefer the older deal too, but beggars cant be...

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1,299 Posts.

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14/09/23

14:43

Post #: 69859205
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Originally posted by 8horse ↑

PSC sold their Zimbabwe lithium project to a Chinese listed company without FIRB approval.

Ganfeng's US$137.2m injection for 5% of the JV, that's effectively similar to the original agreement, A$106m for 10% of Leo, this is a great deal for Ganfeng, same cash injection (US$137.2m = A$106m x 2, funding Leo's A$106m share, for acquiring additional 5%), but Ganfeng gains the control of the JV. I still prefer the original deal. This equity investment effectively values Leo's share at around 80c/share.

Next things to look, are when FFX issues will be sorted, will old agreement/exemption still be applicable? New mining codes implications. New Minister of Mines, was meant to attend ADU conference in Perth last week, but didn't seem happening.

All imo.

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Oh I agree, I prefer the older deal too, but beggars cant be choosers. Financing in Africa is tough.

Ganfeng themselves may not be miners but they do have form in taking out projects close to production.

Praying on a T/O (especially in Africa) is a mugs game, but I would suggest people familiarize themselves with Ganfengs Bacanora acquisition in 2021. Some similarities emerging.

LLL Price at posting: 50.8¢ Sentiment: None Disclosure: Held
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