Leo Lithium has received conditional approval from the Mali Government for the sale of its remaining 40% stake in Mali Lithium BV (MLBV) to China’s GFL International (Ganfeng).

MLBV is the holding company of the Goulamina lithium project.

This marks a significant move in Leo's exit strategy from the Goulamina project.

 The Mali mines minister has given the green light, with the stipulation that transaction documents be submitted and capital gains tax (CGT) paid.

The company has already settled a $7.6m (A$11.53m) CGT bill for a previous 5% stake sale completed on 6 May 2024.

Additional CGT for the current 40% transaction will be paid in the future.

Goulamina stands out as one of the largest lithium projects worldwide, with Stage 1 spodumene concentrate production forecasted at 506,000 tonnes per annum (tpa), increasing to 880,000tpa in Stage 2.

The project boasts a projected mine life of at least 23 years, during which it is expected to produce 15.6 million tonnes of spodumene concentrate.

For the remaining 40% stake in Goulamina, Ganfeng will compensate Leo to the tune of $342.7m.

Ahead of the sale's finalisation, Ganfeng will take over management responsibilities of the project this month, as agreed by the joint venture partners.

While Ganfeng is in the process of assembling its operational team, it has been agreed that Leo will provide management services to the group under a service agreement, which will last for up to six months, concluding by 13 November at the latest.