Ann: Intention to Demerge Goulamina Lithium Project, page-115

Intention to Demerge Goulamina Lithium Project
So I have a bit more time now to unpack this announcement and add a bit of reading between the lines of how this may play out.

The Project:

Results of a Definitive Feasibility Study (DFS) in October 2020, placed Goulamina among world’s
highest quality and largest undeveloped lithium deposits. The DFS confirmed Goulamina as a long life, large scale, low-cost open pit project, delivering outstanding returns including:

• Average production of 436,000 tonnes of spodumene concentrate per annum;
• Average cash costs over life of mine of US$281 per tonne of spodumene concentrate;
• Ore Reserve of 52 million tonnes at 1.51% Li2O for 0.79 million tonnes contained Li2O2;
• Mineral Resource of 109 million tonnes at 1.45% Li2O for 1.57 million tonnes contained Li2O3;
• Initial mine life of 23 years;
• Capital costs of US$194 million; and
• Pre-tax NPV of A$1.7 billion (see ASX release 20 October 2020).

Current Interest:
Since completion of the Goulamina DFS, there have been unsolicited expressions of interest in
Goulamina relating to partnership and offtake opportunities. A number of these parties are currently
in a dataroom and in preliminary discussions with the Company – these will be progressed in parallel with the proposed demerger.

Creation of a New Lithium Focussed Company:
In 2021, Firefinch intends to de-merge Goulamina into a separate lithium focussed entity structured
to permit quotation on ASX (“Lithium Co”; subject to various ASX, shareholder and other regulatory
approvals).

Firefinch shareholders are expected to receive a pro rata allocation of shares in Lithium Co with further details to be provided in due course.

An Investment Bank will be appointed to advise Firefinch and Lithium Co on funding, partnership opportunities, offtake and the de-merger process.

Reading the above from the announcement, in particular the current interest and the appointment of an Investment bank to Advise (Highlighted Sections), I think it would be likely that we could expect more news to flow on a possible deal of some type which may dove tail into the newly created entity. IMO this split would have to be a precursor to any sort of deal if an entity was going to take a position moving forward in our lithium project such as a JV. To do it inside the current company would be far to messy and complex.
So expect more news flow near term as this will likely evolve quickly now the intention has been announced to the market.