Ann: Leo Lithium Secures A$106m Strategic Placement with Ganfeng, page-179

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benladeng414

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04/09/23

14:57

Post #: 69722519
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Originally posted by benladeng414: ↑

An interesting figure regarding the original AUD 106m to LLL and updated USD 137.2m to MLBV from Ganfeng (GF). The latter is exactly double the original figure.

So from purely financial point of view, the money injected by GF to Goulamina is exactly the same.

Explanation:
Under original Investment Agreement, Leo will receive AUD 106m from GF. Then Leo will invest all of them to MLVB.
Since both Leo and GF own 50% of MLVB, GF needs to inject another AUD 106m to MLVB to match Leo. So the total amount to be injected to MLVB from GF will be USD 137.8m = 106m*2*0.65 (AUD/USD).

Now under the new agreement, GF directly inject USD 137.2m to MLBV. So no difference.

Then, from share structure point of view, there is no difference for us as well. No matter in which agreement, Leo shareholders except for GF will own 36% of LMSA.

under the original agreement:
GF will own 10% of Leo, the rest of LEO shareholders will own 90% of Leo.
Leo own 50% of MLVB, so the rest of LEO shareholders own 45% of MLVB.
MLVB own 80% of Goulamina (LMSA), so the rest of LEO shareholders own 36%=45%*80% LMSA

under the new agreement:
GF will own 0% of Leo
Leo own 45% of MLVB, so LEO shareholders own 45% of MLVB.
MLVB own 80% of Goulamina (LMSA), so LEO shareholders own 36%=45%*80% LMSA

Finally, Leo only need to bear 45% expenses to the construction of Goulamina from today.

Expand

From GF point of view, GF's indirect interest to Goulamina is unchanged as well.

previously, GF own 44% of Goulamina from
GF own 50% of MLVB and MLVB own 80% OF LMSA, so GF get 40%
GF own 10% of Leo and Leo own 40% of LMSA as well, So GF get another 4% from Leo indirectly.

Now, GF still get 44% of Goulamina from MLVB directly: 55%*80% = 44%
Last edited by benladeng414: 04/09/23

LLL Price at posting: 57.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Ann: Leo Lithium Secures A$106m Strategic Placement with Ganfeng, page-179

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