Leo Lithium Converts US$177M to A$281.6M, Advances Lithium M&A Pipeline
Leo Lithium has received the final US$177.6 million payment from Ganfeng for its Goulamina stake and is advancing multiple lithium hard rock acquisitions, aiming to relist on the ASX.
- Final tranche 2 payment of US$177.6 million received from Ganfeng
- US$177 million converted to A$281.6 million via call option hedge
- Progressing lithium hard rock M&A opportunities targeting cornerstone asset
- ASX relisting planned post-acquisition, subject to approval
- All AGM resolutions passed, including new auditor appointment
Final Payment Completes Goulamina Sale
Leo Lithium Limited has closed a significant chapter with the receipt of the final tranche 2 payment of US$177.6 million from Ganfeng Lithium Group, completing the sale of its 40% interest in the Goulamina Lithium Project. This payment, received on 3 July 2025, includes US$6.4 million in interest and was largely converted into Australian dollars at a favourable rate, netting A$281.6 million through a previously secured call option hedge. This strategic currency move added nearly A$10 million in value compared to spot rates, underscoring management’s prudent financial stewardship.
Strategic Focus on Lithium M&A
With the Goulamina sale proceeds now fully in hand, Leo Lithium is intensifying efforts to acquire a new lithium asset, focusing on hard rock projects in key jurisdictions such as North and South America. The company is actively progressing a select number of M&A opportunities, aiming to secure a tier 1 development project that can serve as a cornerstone asset. Executive Chairman Simon Hay expressed optimism about announcing a transaction within the current quarter, though he cautioned that no deal is certain until fully negotiated and signed.
Path to ASX Relisting
Leo Lithium’s strategy includes resuming trading on the ASX, contingent on completing a suitable acquisition. The company is targeting majority ownership and operatorship to meet ASX admission requirements. While discussions with the ASX are underway regarding relisting procedures post the automatic delisting date of 19 September 2025, approval is not guaranteed. The company is preparing for the possibility that it will need to re-comply with ASX listing rules as a new applicant, a process that is rigorous but well understood.
Corporate Governance and Financial Position
During the quarter, Leo Lithium held its Annual General Meeting on 28 May 2025, where all resolutions were approved, including the appointment of BDO Audit Pty Ltd as the new company auditor. The company ended the quarter with a cash balance of A$53.3 million, down slightly from the previous quarter due to routine corporate expenses and tax payments related to the Goulamina sale. No mining or exploration activities were undertaken during this period, reflecting the company’s transition phase.
Looking Ahead
Leo Lithium has set a clear deadline – if no acquisition is significantly progressed by the end of September 2025, the company intends to return the tranche 2 funds to shareholders in the second half of the year. This conditional approach balances shareholder interests with the pursuit of growth opportunities in the rapidly evolving lithium market.
Bottom Line?
Leo Lithium’s next moves on M&A and ASX relisting will be pivotal for its market comeback and shareholder returns.
Questions in the middle?
- Which lithium hard rock assets are currently under consideration and how advanced are negotiations?
- What are the key risks and timelines associated with the ASX relisting application process?
- How will the company balance shareholder returns with reinvestment if an acquisition is completed?
