Ganfeng’s massive Mali marriage funding begins new lithium life for Firefinch
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Earlier this week Firefinch formalised its JV with China’s Ganfeng for the development of the Goulamina project in Mali – and now the funding has been secured.
The company has received US$130m in cash from Ganfeng, comprising US$39 million released from escrow, as well as second tranche payment of US$91 million.
A further US$40m in Ganfeng debt or US$64m in third party debt will also be secured by Ganfeng, which will support the construction of the 506,000tpa spodumene operation.
The historic dig is planned to open in 2024 after the final investment decision was made by Firefinch (ASX:FFX) and Ganfeng in January.
Goulamina will be one of the largest hard rock lithium projects in the world, with Stage 2 expansion expected to take its production profile up to an enormous 880,000tpa.
The project has a mineral resource of 109Mt at 1.45% Li2O for 1.57Mt contained Li2O comprising 8.4 million tonnes at 1.57% Li2O in the measured category, 56.2 million tonnes at 1.48% Li2O in the indicated category and 43.9 million tonnes at 1.45% Li2O in the inferred category.
Firefinch is now progressing with the demerger of its 50% share in Goulamina into Leo Lithium, a new ASX-listed entity the company is confident will help it capture the value of the world class asset.
This article was developed in collaboration with Firefinch Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.