It is a big week for Firefinch Ltd (ASX: FFX) shareholders. Later this week, Leo Lithium Limited (ASX: LLL) shares will begin trading on the ASX boards at long last.
Leo Lithium is home to Firefinch's lithium operations, which have been spun out into a separate listing.
Image source: Getty Images
When are Leo Lithium shares hitting the ASX boards?
It won't be long until Leo Lithium shares are trading alongside fellow lithium developers Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR).
Last week, eligible Firefinch shareholders were distributed 1 Leo Lithium share for every 1.4 Firefinch shares they own.
These shares are scheduled to commence trade on the Australian share market on the morning of Thursday 23 June.
What is Leo Lithium?
Leo Lithium has a 50% ownership in the Goulamina Lithium Project in Mali alongside Chinese giant, Ganfeng Lithium.
The Goulamina Lithium Project is one of the world's largest undeveloped high quality spodumene deposits. Management notes that it has a long life, large scale and low-cost open pit project. Once operating at full capacity, it is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne.
Though, it will take a little bit of time to reach full capacity. Ganfeng and Leo Lithium are initially aiming for stage one production of 506,000 tonnes of spodumene concentrate per annum. This is scheduled to commence during the first half of 2024.
The good news for shareholders is that it isn't likely that they will be expected to tip in any extra funds to get the party started. Ganfeng has contributed US$130 million in equity funding to the joint venture and will either source up to US$64 million in external debt or provide US$40 million of debt itself to fund the development of stage one production.
Another positive is that the company has an experienced leadership team. This is being led by former Galaxy Resources CEO, Simon Hay.
Hay was CEO of Galaxy until it merged with Orocobre to form Allkem Ltd (ASX: AKE).
He, along with Firefinch shareholders, will no doubt be watching on closely when Leo Lithium shares start trading on Thursday.
