Firefinch and Ganfeng have agreed on expediting final investment decision (FID) for Goulamina project


Firefinch to advance production at Goulamina. (Credit: jplenio from Pixabay.)

Firefinch has signed agreements with Jiangxi Ganfeng Lithium to advance the 50-50 joint venture (JV) for the Goulamina lithium project in Mali.

Earlier this year, the companies have signed agreements, pursuant to which, Ganfeng would obtain 50% interest in the JV, by providing up to $194m in funding.

The funding includes $130m in equity investment in two instalments, and arranging up to $64m in debt for the construction and bringing the project into production.

The new lithium-focused joint venture has been named as Leo Lithium.

Firefinch managing director Michael Anderson said: “Another significant milestone has been achieved in progressing Goulamina toward construction and production.

“Formal documentation has been completed, and satisfaction of the remaining conditions precedent to completing the US$194 million Ganfeng deal is well underway. In consultation with our partner Ganfeng, we have also agreed to bring forward FID to the end of this year.

“Off the back of a positive FID, we will be in a very strong position to demerge Goulamina into a dynamic new ASX-listed lithium player, Leo Lithium, and list in early 2022.”

Firefinch and Ganfeng have agreed on expediting final investment decision (FID) for Goulamina, targeting the December quarter this year.

With early completion of FID, Ganfeng is expected to provide the second cash investment of $91m and arrange debt funding of up to $64m earlier than initial expectations.

Firefinch and Ganfeng have jointly worked on engineering scope and design, including the incorporation of suggested changes to the processing flowsheet, since the announcement.

The companies have appointed Lycopodium to carry out an update to the October 2020 DFS (Updated DFS), which will support FID.

Claimed to the first of its kind in West Africa, Goulamina is now targeted to enter into production in 2023. It is expected to the next large scale global lithium hard rock project to enter production in the region.

Ganfeng vice chairman Xiaoshen Wang said: “We are delighted to move forward in our partnership with Firefinch at Goulamina.

“We are especially pleased to accelerate the process to achieve FID and look forward to bringing Goulamina to production as soon as possible.”