Ahead of its listing later this month, let’s take a look at Australia’s latest ASX lithium share.
What is Leo Lithium?
Leo Lithium will be home to Firefinch’s demerged lithium operation. This comprises a 50% ownership in the Goulamina Lithium Project in Mali. Chinese giant, Ganfeng Lithium, owns the balance.
The company highlights that the Goulamina Lithium Project in Mali is one of the world’s largest undeveloped high quality spodumene deposits.
Its recent definitive feasibility study update confirmed Goulamina as a long life, large scale and low-cost open pit project which is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne.
In partnership with Ganfeng, Leo Lithium has commenced initial development activities. If all goes to plan, stage one production of 506,000 tonnes per annum is anticipated to commence during the first half of 2024.
Pleasingly, Ganfeng has contributed US$130 million in equity funding to the joint venture and will either source up to US$64 million in external debt or provide US$40 million of debt itself to fund the development of stage one.
Leading the charge will be Simon Hay. He was previously the CEO of Galaxy Resources prior to its merger with Orocobre, which later became Allkem Ltd (ASX: AKE).
When are Leo Lithium shares trading?
There’s still a little time to wait before Leo Lithium shares commence trade on the ASX boards.
According to its most recent timetable, management expects them to start trading on 23 June 2022.
Shareholders will no doubt be hoping the recent volatility in the lithium industry will have calmed down by then.