Subscribe
Be the first with the news that moves the market- Firefinch (FFX) progresses its Leo Lithium demerger, successfully raising $100 million through the lithium entity’s initial public offering (IPO)
- The IPO closed oversubscribed, with over 90 per cent of the offer allocated to existing FFX shareholders
- Firefinch has now satisfied all steps required for the demerger and will seek shareholder approval for the move at a general meeting on Tuesday
- If the demerger is approved, Leo Lithium shares will be transferred to eligible Firefinch shareholders on the basis of one Leo Lithium share for every 1.4 FFX shares held
- Shares Firefinch last traded at $1.10
Firefinch (FFX) has progressed its Leo Lithium demerger, successfully raising $100 million through the lithium entity’s initial public offering (IPO).
The IPO closed oversubscribed, with over 90 per cent of the offer allocated to existing FFX shareholders.
Firefinch acquired its full $20 million allocation under the IPO.
Firefinch first flagged its plans to list Leo Lithium as a separate entity under a joint venture partnership with China’s Ganfeng Lithium in August 2021. Together, Leo Lithium and Ganfeng would own the Goulamina lithium project in Mali.
With the completion of the IPO, Firefinch has now satisfied the steps required for the demerger, meaning all that remains is for the company to land shareholder approval at a general meeting set to be held on Tuesday.
If the demerger is approved, Leo Lithium shares will be transferred to eligible Firefinch shareholders on the basis of one Leo Lithium share for every 1.4 FFX shares held.
Firefinch Managing Director Michael Anderson said this was an important milestone in the company’s plans to separate its gold and lithium assets.
“Subject to shareholder approval, the demerger will allow Firefinch to focus its attention on the development of the world-class, multi-million-ounce Morila gold project while providing our shareholders with exposure to the future development of Goulamina through our 20 per cent retained stake,” Dr Anderson said.
Leo Lithium is expected to list on the ASX on June 23.
Shares in Firefinch last traded at $1.10.
