BRI: China's Ganfeng Lithium acquires 50 percent stake in Mali lithium mine

China's Ganfeng Lithium said on Monday that its subsidiary GFL International would acquire a 50 percent equity stake in a special purpose vehicle (SPV) that owns the Goulamina Spodumene Mine Project in Mali for $130 million.

 

GFL International will acquire a 50 percent equity stake in the SPV from Australia's Firefinch, Ganfeng Lithium said in a regulatory announcement posted on its website. It said the SPV would have 100 percent equity interest in Lithium du Mali (LMSA), which will own 100 percent of the Goulamina Spodumene Mine Project.

 

The ASX-listed Firefinch, which holds the license for the Malian mine, is principally engaged in the development of minerals such as gold and lithium in Sub-Saharan country, the statement noted.

 

Gangfeng Lithium said the equity acquisition involves mining rights investment and provisions for direct financial assistance up to $40 million and support for raising more than $64 million of debt funds from third-party banks or other financial institutions for LMSA, the statement said.

 

It said post-acquisition, GFL would be entitled to 50 percent of the annual production capacity of the first phase, estimated at 455,000 tonnes of spodumene concentrate. Offtake rights for the remaining 50 percent would be contingent on rendering direct or indirect financial assistance for the project.

 

In terms of risks, Ganfeng Lithium said the Malian government is entitled to obtaining 10 percent equity interest in domestic mining companies in Mali free of charge and acquire an additional 10 percent in the form of cash or otherwise, which could impact the ultimate shareholding of the SPV in LMSA.

 

(Writing by SA Kader; Editing by Anoop Menon)