Firefinch Announces Binding Agreement for Potential Value Delivery to Shareholders
Firefinch Limited
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Firefinch Announces Binding Agreement for Potential Value Delivery to Shareholders

Firefinch Limited, an Australian mining company, enters into a binding agreement for the sale of assets to provide value and liquidity to its shareholders

Firefinch Limited has taken a significant step towards delivering value and liquidity to its shareholders with the announcement of a binding agreement. The company has entered into an agreement with a preferred bidder for a potential transaction that involves the sale of its shares in Leo Lithium Limited and its interests in the Morila Gold Project in Mali.

Unlocking Shareholder Value through Asset Sales

Under the terms of the agreement, Firefinch will sell all of its shares in Leo Lithium Limited, which holds the Goulamina Lithium Project in Mali. The sale price per share is set at $0. 60, amounting to a total consideration of $171 million. This transaction provides an opportunity for Firefinch to monetise its investment in the lithium project and deliver value to its shareholders.

Additionally, Firefinch will sell all of its interests in the Morila Gold Project and related permits in Mali for a total of $50 million.

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These asset sales will contribute to Firefinch's strategy of focusing on core projects and maximising value for its shareholders.

Conditions and Timeline

Completion of the transaction is subject to customary conditions, including shareholder approval and regulatory approvals. Firefinch expects to finalise the transaction by the end of September 2023. Following the completion of the transaction and the distribution of proceeds, Firefinch will delist from the ASX.

Gratitude to Shareholders

Firefinch expressed its appreciation to its shareholders for their support and patience throughout the strategic review process. The company believes that the proposed transaction is in the best interests of Firefinch and its shareholders, providing an opportunity to unlock value and enhance liquidity. Firefinch remains committed to maximising shareholder returns and pursuing opportunities that align with its long-term growth objectives.

Disclaimer: This article provides a summary of the original Firefinch announcement and is not a substitute for the full text of the announcement.

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