Leo Lithium Limited (ASX:LLL) has announced it received the final payment of US$171.2 million from Ganfeng Lithium Group Co. Ltd for the sale of its 40% shareholding in Mali Lithium B.V., the holding company of the Goulamina Lithium Project. Leo Lithium is focused on the development of the Goulamina lithium project in Mali and advancing other prospective opportunities. The company also received US$6.4 million in interest on the payment, bringing the total receipts to US$177.6 million.
In April 2025, Leo Lithium purchased a call option for USD177.0 million at an AUD:USD exchange rate of 0.6282, inclusive of option premium costs. The company will exercise this option to convert the full amount into Australian dollars. The funds are earmarked for potential M&A activity, with a decision on returning the funds to shareholders contingent on the progress of these acquisitions.
The company is actively pursuing several lithium hard rock M&A opportunities and anticipates a potential announcement in the current quarter. Any deal announcement will detail the intended use of the Tranche 2 funds, including any potential distribution to shareholders. It is expected that any shareholder approval and distribution will occur in the second half of calendar year 2025.
Furthermore, Ganfeng’s first shipment of spodumene concentrate from the Goulamina Lithium Project has departed from the port of Abidjan, Côte d’Ivoire. Leo Lithium will receive a trailing product service fee (TPSF) on this material in the fourth quarter of 2025. The structure of any acquisition completed after the automatic delisting date of September 19, 2025, will include an application to relist on the ASX, though approval is not guaranteed.
