Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content

Energy

Australia's Firefinch soars on deal with China's Ganfeng for Mali lithium project

2 minute read

June 16 (Reuters) - Australian lithium miner Firefinch (FFX.AX) said on Wednesday it signed a binding deal with China's Ganfeng Lithium (002460.SZ) to jointly develop and operate its Goulamina project in Mali, sending its shares soaring 25%.

Ganfeng, one of the world's biggest lithium producers, will make cash investments of $130 million for a 50% stake in a joint venture company for the lithium project, Firefinch said.

The Chinese miner also agreed to a purchase up to 100% of the spodumene concentrate — from which the lithium is extracted — that will be produced at Goulamina across the life of the mine. A study conducted by Firefinch pegs the life at 23 years.

Firefinch expects to make a final investment decision (FID) on the project within six months of the deal's completion. Reaching an FID is a key condition for Ganfeng to make $91 million worth of the funding.

Shares of Firefinch, on halt since Tuesday, jumped to as much as A$0.570 to their highest since April 2018. Ganfeng's shares, however, slipped about 4% on Tuesday.

Reporting by Vasudha Kaukuntla in Bengaluru; editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters