Firefinch (ASX:FFX) - Outgoing Managing Director, Dr Michael Anderson
Outgoing Managing Director, Dr Michael Anderson
Source: Firefinch
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  • Firefinch (FFX) is set to form a joint venture with Jiangxi Ganfeng Lithium Co, following its part acquisition of the Goulamina Lithium Project in Mali
  • Jiangxi Ganfeng gained approval from shareholders to progress its 50 per cent acquisition of the project, following Chinese regulatory and Malian Government approvals
  • Once these conditions are satisfied, Ganfeng will make an initial US$30 million (around A$41 million) cash investment into the joint venture, with a further US$91 million cash (roughly A$124 million) to be provided after a final investment decision on the project has been made, anticipated for the December quarter
  • Firefinch last traded at 58 cents on August 31

Firefinch (FFX) is set to form a joint venture with Jiangxi Ganfend Lithium Co, following its part acquisition of the Goulamina Lithium Project.

Jiangxi Ganfeng gained approval from shareholders to progress its 50 per cent acquisition of the project. Currently, Firefinch holds a 100 per cent of the Mali project, which is considered one of the world’s largest underdeveloped spodumene deposits.

Firefinch Managing Director, Dr Michael Anderson commented: “The approval from Ganfeng’s shareholders marks an important milestone for the Goulamina joint venture 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.”

However, the Goulamina joint venture transaction can’t be completed until two remaining conditions are met, Chinese regulatory and Malian Government approvals. Firefinch says both of these are progressing well, with an update expected within the next two and three months.

Once these conditions are satisfied, Ganfeng will make an initial US$30 million (around A$41 million) cash investment into the joint venture, with a further US$91 million cash (roughly A$124 million) to be provided after a final investment decision on the project has been made, anticipated for the December quarter.  

All permits are in place for mining to begin at Goulamina, with a previous definitive feasibility study confirming the project as a long life, large scale and low-cost open pit project. Goulmina is expected to produce 436 kilotonnes per annum (ktpa) of spodumene concentrate at an average cash cost of US$281 (around A$384) per tonne.

Firefinch last traded at 58 cents on August 31.

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