Firefinch Ltd (ASX:FFX) announced today that funds totaling US$130 million (AU$173 million) has been received by the Goulamina Lithium project Joint Venture Company from Jiangxi Ganfeng Lithium Co. Ltd.
Both Firefinch and Ganfeng hold a 50% interest in the JV company.
The funding provided to the JV company by Ganfeng comprises a US$39 million (AU$52 million) which was released from escrow and a further US$91 million (AU$121 million) second tranche investment.
Ganfeng is also obliged to provide either US$40 million (AU$53 million) of Ganfeng direct debt, or source US$64 million (AU$85 million) of third-party debt.
Together, Ganfeng’s equity and debt funding package of US$170 million (AU$226 million) is expected to substantially fund the Goulamina Lithium Project through the development phase.
Firefinch is proceeding with the demerger of Goulamina into Leo Lithium Ltd in accordance with regulatory time frames.
- Duncan Bailey