First Lithium Limited has secured an $800,000 loan facility and received encouraging signals from the Mali government on license renewals for its key lithium projects, setting the stage for resource estimation and further development.
- Mali government signals imminent renewal of Gouna and Faraba licenses
- Secured $800,000 convertible loan from sophisticated investors
- Loan convertible into shares with attached options, pending shareholder approval
- Funds earmarked for license finalization, maiden resource estimate, and working capital
- CPS Capital appointed as lead manager for the loan facility
License Renewal Momentum in Mali
First Lithium Limited (ASX, FL1) has received positive feedback from the government of Mali indicating that the renewal process for its Gouna and Faraba lithium exploration licenses is expected to commence shortly. This development is a crucial step forward for the company, which has been actively conducting mapping and survey work on these permits throughout the year under provisional approvals.
Securing these licenses is fundamental to advancing the company’s exploration agenda, particularly as it aims to complete its maiden Mineral Resource Estimate (MRE) and evaluate next steps toward potential production. The confirmation from Mali’s authorities provides a welcome boost to First Lithium’s operational outlook in a region that is increasingly attracting global attention for its lithium potential.
Strategic Funding Secured
To support these milestones, First Lithium has finalized a loan agreement for up to $800,000 with sophisticated and professional investors, including existing substantial shareholders. The funding will be drawn in two tranches of $400,000 each, with the first tranche available immediately and the second tranche by mid-December 2025.
The loan carries a 10% annual interest rate and is convertible into fully paid ordinary shares at $0.10 per share, accompanied by unlisted options exercisable at $0.30. This convertible structure, subject to shareholder approval, offers investors potential upside participation while providing the company with flexible capital to advance its projects without immediate repayment obligations.
Implications for Project Development
Managing Director Venkatesh Padala expressed optimism about the combined impact of the license renewal progress and the new funding. With these elements in place, First Lithium can focus on finalizing its maiden resource estimate and planning further exploration or production strategies. The company’s ongoing work on the Blakala permit, supported by government letters, also continues to build its regional footprint.
The engagement of CPS Capital as lead manager for the loan facility adds a layer of professional oversight and market credibility. CPS Capital will receive fees and options as part of their mandate, aligning their interests with the successful execution of the funding and subsequent project milestones.
Looking Ahead
While the license renewals remain pending and the loan conversion securities require shareholder approval, these developments mark a tangible step forward for First Lithium. The company’s ability to secure funding on market-standard terms and receive encouraging regulatory signals in Mali positions it well to advance its lithium exploration ambitions amid growing global demand for battery metals.
Bottom Line?
First Lithium’s near-term focus will be on securing official license renewals and leveraging fresh capital to unlock the value of its Mali lithium projects.
Questions in the middle?
- When will the Mali government officially issue the renewed licenses for Gouna and Faraba?
- What are the key assumptions underpinning the maiden Mineral Resource Estimate timeline?
- How might shareholder approval processes impact the timing and structure of the loan conversion?