Thomson Geer is advising lithium miner Leo Lithium Ltd on a strategic placement of shares that will raise A$106.1 million from joint venture partner and China's largest lithium producer Ganfeng.
The firm is also advising Leo Lithium on a new cooperation agreement between Leo Lithium and Ganfeng that will deliver a range of strategic benefits for Leo Lithium.
Leo Lithium, dual listed on the Australian Securities Exchange and Frankfurt Stock Exchange, is developing the Goulamina lithium mine in Mali, Africa. Lithium is a critical ingredient in lithium-ion batteries which are used in electric vehicles, energy storage and personal devices.
Proceeds from the placement will ensure Leo Lithium is fully-funded for its share of Goulamina Stage 1 development and operational ramp-up costs. The cooperation agreement includes a study into expanding Goulamina Stage 2 capacity, studying the concept of co-investing in a downstream conversion facility, amending off-take agreements for Goulamina Stage 2, and establishing and jointly funding an exploration joint venture to focus on opportunities in Australia.
The team is advising on all aspects of the placement and cooperation agreement.
"We are pleased to be advising Leo Lithium on this share placement and cooperation agreement that will see the company progress to the next chapter of its development," Michael Bowen said.
Barrenjoey is acting as Financial Adviser and Lead Arranger to the strategic placement.