Firefinch splits up gold and lithium assets

The demerger of Leo Lithium from Firefinch has been given the green light, with an initial public offering (IPO) to raise up to $100 million for Leo oversubscribed when closed.

The IPO, comprising a pro-rata offer to eligible Firefinch shareholders, a shortfall offer and an offer to Firefinch, received strong support from shareholders and high quality institutional investors.

More than 90 per cent of the offer was allocated to existing shareholders. In addition, each Firefinch shareholder who submitted an application under the shortfall offer for less than $2000 was not scaled back.

Firefinch has acquired its full $20 million allocation under the Firefinch offer, as part of the IPO.

Under the demerger, the company will transfer Leo Lithium shares to eligible Firefinch shareholders by way of a pro-rata in-specie distribution, on the basis of one Leo Lithium share for every 1.4 Firefinch shares, on June 9.

Leo Lithium shares to be allotted under the IPO are now anticipated to be issued on June 16, with admission to the stock exchange and commencement of trading targeted for June 23 .

Firefinch is an ASX-listed gold miner and lithium developer, with two outstanding assets in Mali – the Morila Gold Mine and Goulamina Lithium Project.

Firefinch managing director Michael Anderson said the company reached an important milestone in the separation of its gold and lithium assets.

“Subject to shareholder approval, the demerger will allow Firefinch to focus its attention on the development of the world-class, multi-million-ounce Morila Gold Project, while providing our shareholders with exposure to the future development of Goulamina  through our 20 per cent retained stake.”

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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