I made this table to compare, and understand, the new and the old cooperation agreements:
| NEW | OLD |
| Equity Investment Agreement | Strategic Placement Agreement |
| Direct equity into MLBV (the JV) | Placement into LLL |
| Committed Stage 2 increase to 500ktpa | Study Stage 2 expansion to 500ktpa |
| Study co-invest into downstream facility closer to Africa | Same |
| Stage 2 offtake to include downstream tolling option | Same |
| Jointly funded exploration | Same |
| USD 137.2m to JV | AUD 106.1m to LLL ~USD70 |
| additional 5% interest of MLBV (total 55%) | 9.9% of LLL (share dilution) |
| Stage 3 offtake = equity ie. 55% | Stage 3 offtake 50:50% |
| Stage 1 offtake control 100% Gangf | Same |
| Stage 2 offtake control 70% Gangf | Same, Gangf 350ktpa, LLL150ktpa |
All stages, Gangf offtake profit flows to JV, then split .: Gangf profit +5% from JV
No exposure to LLL controlled offtakes | Gangf would have received JV share of profit, and 9.9% of LLL profit /share .: 3.5-4% JV profits? |
| CAPEX responsibilities 55% gangf, 45%LLL ( clarified on conf. call) |
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| Increased Gangfeng representation in government level meetings in Mali (stated in conf. call) |
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| Easier regulatory approval in China (and FIRB* Assumed) |
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| Expected JV ownership, 50% Gangf, 40% LLL, 10% Mali |
| Worst case JV ownership; 45% Gangf, 35% LLL, 20% Mali |
From the details that have been given the agreements appear fairly even; Gangfeng will pay into the JV twice as much cash as they would of paid to Leo for ongoing JV expenses, they receive a 5% increase in stake, a slightly better profit percentage from offtake Lithium controlled by Gangfeng, and they take on an additional 5% of JV CAPEX responsibilities (as clarified in the teleconference). They also don't profit from the Leo controlled offtakes
(20min delay)