Firefinch has announced that Jiangxi Ganfeng Lithium has received shareholder approval to progress the 50% acquisition of the Goulamina Lithium Project and formation of a joint venture.
Ganfeng shareholder approval was one of three key outstanding conditions precedent to the Goulamina JV Transaction.
Firefinch MD, Dr Michael Anderson comments:
“The approval from Ganfeng’s shareholders marks an important milestone for the Goulamina JV Transaction and the establishment of our partnership with the world’s largest lithium producer, which will ultimately see Goulamina become the first lithium producer in West Africa.
“There are two remaining items to complete the Goulamina JV Transaction – Chinese regulatory and Malian Government approvals – both of which are well progressed. This is an exciting time for Firefinch shareholders, and we expect an outcome on these items within the next 2 – 3 months.
“Once the two remaining conditions precedent are satisfied, Ganfeng will then make an initial US$39 million cash investment into the joint venture, with a further US$91 million cash (in addition to up to US$64 million in debt funding), to be provided shortly after a final investment decision (FID) on Goulamina.
“As previously announced, Firefinch and Ganfeng have agreed to expedite FID to the December Quarter 2021 given the strong lithium market dynamics and we look forward to updating the market in due course.”