poker62| Ganfeng Lithium (01772) plans to further acquire the remaining 40% stake in Mali Lithium for no more than US$342.7 million

Zitong Financial App NewsPoker62Ganfeng Lithium Industry (01772) announced that on September 6, 2023, the company's wholly-owned subsidiaries GFL International, Leo Lithium, Mali Lithium and Mali LMSA entered into a cooperation agreement, under which GFL International agreed to subscribe for new shares through its own working capital.Poker62The way to increase the capital of Mali Lithium is not more than 1Poker62.38 billion US dollars. The capital increase will be used for the follow-up project construction and capital expenditure of the Goulamina project.

On January 15, 2024, GFLInternational, Leo Lithium and Mali Lithium entered into a 5 per cent acquisition agreement, under which GFLInternational agreed to purchase through its own working capital and Leo Lithium agreed to sell Mali Lithium not more than 5 per cent of all issued shares for a consideration not exceeding $65 million. When the 5 per cent acquisition is completed, GFL International will hold no more than 60 per cent of Mali Lithium.

As of the date of this announcement, the subscription has been completed and the acquisition of 55% of Mali Lithium's issued shares held by GFL International has not been completed.

On May 7, 2024, GFL International, Leo Lithium, the company and Mali Lithium entered into a 40% acquisition agreement, under which GFL International agreed to purchase 40% of all issued shares of Mali Lithium from Leo Lithium for a consideration not exceeding 3%.Poker6242.7 billion US dollars.

Immediately before the date of the 40 per cent acquisition agreement, GFL International and Leo Lithium held stakes in Mali Lithium55% and 45 per cent respectively. Upon completion of the 5 per cent acquisition and 40 per cent acquisition, Mali Lithium will become an indirect wholly owned subsidiary of the company and its results will be consolidated within the scope of the company's consolidated statements.

As of the date of this announcement, Mali Lithium owns the Goulamina spodumene deposit south of Mali through Mali LMSA.

The board of directors believes that this transaction is in line with the company's upstream and downstream integration strategy and the further development of the new energy vehicle industry. This move will also further strengthen the company's control over Mali Lithium, ensure the supply of lithium resources, promote business expansion, and enhance the company's core competitiveness. In addition, the company will obtain the management rights of the Goulamina project, which will play a positive role in promoting the development and construction of the Goulamina project. Although this transaction will result in a certain degree of net cash flow, it will not have a significant impact on the adequacy of the company's working capital.