17/06/2021

G+T advises Firefinch on partnership with Ganfeng and USD$194 million investment into Goulamina lithium deposit in Mali.

Firefinch Limited (Firefinch), an ASX-listed gold miner and lithium developer, has entered into an incorporated joint venture with Chinese battery metals giant Ganfeng (the world’s largest lithium producer by capacity) in respect of its Goulamina project in the West African nation of Mali (Goulamina Project). The deal will see Ganfeng provide funding of up to $US194 million in return for a 50% stake in the Goulamina Project. 

Firefinch and Ganfeng have executed a binding term sheet which establishes a 50:50 incorporated joint venture between Firefinch and Ganfeng. Ganfeng has also agreed to an offtake agreement for up to 100% of the spodumene concentrate produced at the Goulamina Project across the life of the mine. The deal means that the Goulamina Project is almost fully funded and is set to become the world’s next big lithium development.

Gilbert + Tobin continues to advise Firefinch on the negotiations and drafting of the full form transaction documents. The team was led by Energy + Resources partner Michael Blakiston, with support from lawyer Amelia Arndt

Energy + Resources’ partner Michael Blakiston commented on this latest transaction stating: “It continues to be a privilege to be advising Dr Alistair Cowden and his team as they continue the fantastic transformation of Firefinch from a junior explorer firstly into a gold producer and as a result of this recently announced transaction, potentially a significant world lithium producer. Firefinch has focused its endeavours in Mali and has shown great maturity in being able to work with the Malian government which has been in a period of transition.” 

The deal follows Firefinch’s previous transformative acquisition of the Morila Gold Mine in Mali only eight months before in November 2020, and A$75 million fundraising which Gilbert + Tobin also assisted with. 

Firefinch has announced its intention to spin off its interest in the Goulamina Project into a separate ASX listed entity, a process Gilbert + Tobin is also advising on. This transaction further underpins Gilbert + Tobin’s extensive experience in the lithium mining sector, as well as project development in West Africa and Africa more broadly.

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