Firefinch Ltd (ASX:FFX) has achieved another key condition relating to the joint venture with Jiangxi Ganfeng Lithium Co Ltd covering Goulamina Lithium Project with approval received for the transaction from the Malian Government.
With the company receiving a letter of non-objection from the Malian Government to the JV transaction, the final condition precedent is the receipt of Chinese regulatory approvals.
The company’s advice is that this is imminent and when received, will allow transfer of the Exploitation Licence for the Goulamina Project to the JV company.
Advantages for Mali
In considering the transaction, Mali's Minister of Mines, Energy and Water highlighted the advantages for Mali: “The Goulamina transaction will materialise the development of the first producing spodumene concentrate operation in West Africa, and on the Malian territory.
"It will allow Mali to attract new investments focused on metals used for the manufacture of batteries and the field of renewable energies.
"In addition, as part of the transaction, there is a focus on the creation of local jobs, the establishment of local infrastructure and the rapid monitoring of community engagement plans to meet the needs of local communities, which also aligns with the Malian Mining Code in terms of local content.”
Ganfeng investment
On satisfaction of the conditions precedent, Ganfeng will provide the first US$39 million cash investment for the Goulamina project.
Ganfeng and Firefinch are working collaboratively to fast-track an update of the October 2020 Goulamina Definitive Feasibility Study (DFS).
“Key to success”
Firefinch managing director Dr Michael Anderson said: “The support of the Malian Government and local community is key to the success of Goulamina and we are delighted to receive their formal support of our plans to develop this world-class project.
"Goulamina will be the next large-scale global lithium hard rock project to enter production, and the first of its kind in West Africa, with production targeted for 2023.”
Updated DFS
The updated DFS will underpin an expedited final investment decision (FID), which is anticipated during the December quarter of 2021.
This will also trigger Ganfeng’s second cash investment of US$91 million, and subsequent debt funding of up to US$64 million, all to be received during Q4 2021, earlier than initially anticipated.
"Together with our partner, Ganfeng, the world’s largest lithium chemicals producer, we are working to expand the scale and production capacity of Goulamina and look forward to updating shareholders on the revised DFS in the coming weeks,” Anderson added.