- The world's largest lithium producer, Ganfeng, is set to acquire 50 per cent of the FireFinch (FFX) licensed Goulamina Project in Mali for US$130 million (around A$169 million)
- The deal is tipped to bring what is considered a world-class lithium project into production
- Goulamina is currently held by Firefinch’s wholly owned subsidiary and touts a landholding of 100 square kilometres
- Ganfeng is also set to take up 100 per cent of spodumene concentrate produced at Goulamina and has previously supplied to BMW, LG Chem and Tesla
- Firefinch shares were up 13.2 per cent to trade at 51.5 cents
The world's largest lithium producer, Ganfeng, is set to acquire 50 per cent of the FireFinch (FFX) licensed Goulamina Project in Mali for US$130 million (around A$169 million).
The parties inked a binding term sheet to bring the world-class lithium project into production, with Ganfeng Lithium set to invest up to US$194 million (about A$252.2 million) into its development.
The funds are set to be invested into a special purpose vehicle, Mali Lithium BV, which will hold Firefinch’s interest in Goulamina and grant Ganfeng its 50 per cent stake.
The Goulamina Project is currently held by Firefinch’s wholly owned subsidiary, Timbuktu Resources SARL and will eventually be subject to a 10 per cent free carried interest to the Government of Mali.
The project comprises a land holding of 100 square kilometres of hard rock lithium pegmatites in the Bougouni Region of southern Mali, approximately 150 kilometres by road from Mali’s capital, Bamako.
Ganfeng has also agreed to enter into an offtake agreement for up to 100 per cent of spodumene concentrate product produced at Goulamina across the life of mine.
The company is regarded as the largest lithium producer in the world, supplying to companies such as BMW, LG Chem and Tesla.
Firefinch Chairman Dr Alistair Cowden described the deal as a watershed moment for the ASX-lister.
"The offtake deal effectively integrates and elevates Goulamina into the global lithium supply chain at an optimal time for battery metals demand," he said.
"Goulamina now stands to be the world’s next lithium mine of scale."
Detailed engineering and the securing of long-lead items is expected to commence on closing of the transaction, with a final investment decision anticipated within six months thereafter.
Firefinch shares were up 13.2 per cent to trade at 51.5 cents at 12:01 am AEST.