Leo sells project stake for $98m

Leo Lithium announced late on Friday it had sold a 5 per cent stake of its Goulamina lithium project in Mali to Chinese-based Ganfeng for $98 million, as discussions with the Malian government regarding a negotiated settlement continue. 

The purchase is the latest example of Leo's close ties with Ganfeng, China's largest lithium producer, after it secured an $106 million strategic placement with the company in May last year, ensuring a 9.9 per cent stake in Leo. 

Following the transaction, Ganfeng's interest in Goulamina will hit 60 per cent, while Leo will claim the remaining 40 per cent via Goulamina's holding company, Mali Lithium. 

On September 4 last year, Leo's share price tumbled by 50 per cent, on the back of news that the Mali Ministry of Mines had imposed a suspension on direct shipping ore from Goulamina, after it wanted to review aspects of the product.

The company told the market that discussions with the Malian government were ongoing, but were hopeful a mutually beneficial outcome could be reached. 

More to come.