Firefinch has announced that to realise the true value of the Goulamina lithium project (Goulamina), it intends to progress a demerger of Goulamina into a separate lithium focussed company which is expected to be listed on the ASX in 2021, subject to shareholder and other required approvals.
Under Firefinch ownership, Goulamina has been positioned as a world class project, ready to commence development with granted permits in place.
Results of a Definitive Feasibility Study (DFS) in October 2020, placed Goulamina among world’s highest quality and largest undeveloped lithium deposits.
The creation of a new lithium focussed company in a strong lithium market is the optimal way to realise the value for shareholders.
A sample of ASX lithium companies is up approximately 260% since 30 October 2020, demonstrating investor support for pure play lithium companies.
Since completion of the Goulamina DFS, there have been unsolicited expressions of interest in Goulamina relating to partnership and offtake opportunities.
A number of these parties are currently in a data-room and in preliminary discussions with the Company – these will be progressed in parallel with the proposed demerger.
Executive Chairman, Dr Alistair Cowden, comments:
“The Goulamina Lithium Project and the Morila Gold Mine are both high quality assets. Given the remarkable opportunity of two world class projects, Firefinch’s board believes that demerging the Goulamina Lithium Project into a separate entity is the best way to realise material value for shareholders.
“Firefinch now offers a unique investment proposition with this restructure, shareholders will own shares in each of a high growth gold and lithium company.
“Firefinch will become solely focussed on gold on the completion of the demerger.”