Leo Lithium Faces ASX Delisting Uncertainty Amid M&A and Capital Deployment
Leo Lithium has received the final US$177.6 million payment from the sale of its Goulamina stake and is advancing lithium-focused acquisitions, with a potential deal announcement expected soon.
- Final US$171.2M plus US$6.4M interest received from Ganfeng for Goulamina stake
- Funds to be converted to AUD via a USD call option purchased earlier this year
- Company progressing lithium hard rock M&A opportunities with announcement expected in Q3 2025
- If no acquisition materializes, funds will be returned to shareholders in H2 2025
- First spodumene shipment from Goulamina has departed, triggering a trailing product service fee
Final Payment Received for Goulamina Stake
Leo Lithium Limited (ASX – LLL) has confirmed receipt of the final tranche of US$171.2 million from Ganfeng Lithium Group for the sale of its 40% interest in the Goulamina Lithium Project, located in Mali. Alongside this, the company also received US$6.4 million in interest, bringing total proceeds to US$177.6 million. This milestone marks the completion of a significant capital event for Leo Lithium, underpinning its next strategic phase.
Currency Strategy and Capital Deployment
Earlier this year, Leo Lithium prudently purchased a call option to convert the US dollar proceeds into Australian dollars at a favourable exchange rate, locking in USD177 million at 0.6282 AUD/USD. The company plans to exercise this option fully, mitigating currency risk and securing AUD funds for upcoming initiatives.
M&A Focus and Shareholder Returns
Management is actively advancing a select number of lithium hard rock acquisition opportunities, with optimism for an announcement within the current quarter. The use of the Tranche 2 funds from the Goulamina sale will be closely tied to these M&A activities. Should a transaction proceed, shareholder approval will be sought, and the company has indicated that if no suitable deals are finalized by Q3 2025, the funds will be returned to shareholders in the latter half of the year.
ASX Delisting and Potential Relisting
Leo Lithium faces an automatic delisting from the ASX scheduled for 19 September 2025. However, the company has outlined plans to seek relisting should an acquisition complete after this date. Engagement with the ASX is underway, though approval is not guaranteed, adding an element of uncertainty to the company’s market status in the near term.
Production Milestone at Goulamina
In a related development, Ganfeng has shipped the first spodumene concentrate from the Goulamina project, departing from the port of Abidjan, Côte d'Ivoire. This shipment triggers a trailing product service fee payable to Leo Lithium in Q4 2025, providing a potential additional revenue stream linked to ongoing production.
Bottom Line?
Leo Lithium’s next moves in M&A and potential ASX relisting will be pivotal for its future trajectory.
Questions in the middle?
- Which lithium hard rock acquisition will Leo Lithium announce in Q3 2025?
- How will the company balance shareholder returns with reinvestment in growth opportunities?
- What are the chances and implications of Leo Lithium’s ASX relisting post-delisting?
