LLL - Leo Lithium lists today at 11am - (50/50 joint venture with Ganfeng)
‘Goulamina’ lithium project in Mali, which is expected to be one of the largest hard rock lithium mines in the world once it enters production in H1 2024.
The project is being developed in a 50/50 joint venture with Ganfeng, the world’s largest lithium chemical producer. Ownership will be split between LLL (45%), Ganfeng (45%) and the State of Mali (10%).
Ganfeng is providing funding, offtake, and operational support to de-risk development – making this project one of the few to come online over the next few years.
What is Leo Lithium?
Leo Lithium has a 50% ownership in the Goulamina Lithium Project in Mali alongside Chinese giant, Ganfeng Lithium.
The Goulamina Lithium Project is one of the world’s largest undeveloped high quality spodumene deposits. Management notes that it has a long life, large scale and low-cost open pit project. Once operating at full capacity, it is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne.
Though, it will take a little bit of time to reach full capacity. Ganfeng and Leo Lithium are initially aiming for stage one production of 506,000 tonnes of spodumene concentrate per annum.
The good news for shareholders is that it isn’t likely that they will be expected to tip in any extra funds to get the party started. Ganfeng has contributed US$130 million in equity funding to the joint venture and will either source up to US$64 million in external debt or provide US$40 million of debt itself to fund the development of stage one production.
Another positive is that the company has an experienced leadership team. This is being led by former Galaxy Resources CEO, Simon Hay.
