Leo Lithium (ASX:LLL) has revealed it’s set for a cash injection with the sale of its interest in the Goulamina Lithium Project (GLP) to Ganfeng.

That comes through the offloading of a 40% stakeholding in Mali Lithium BV to the latter, which serves to see Leo no longer tied to the project by any measure.

Leo will pick up US$116.3M (nearly A$180M) Net Tranche 1 cash consideration deliverable in January of 2025.

“The total amount of Mali capital gains tax payable on the sale is US$44.7 million which has been deducted from the gross consideration payable of US$161 million and has been paid directly to the Mali Government by Ganfeng,” Leo wrote on Wednesday.

(How charming for Mali’s government, and how gracious of Ganfeng – for those uninformed, a massive Chinese lithium player.)

Taxes are in line with earlier estimates announced to market, Leo stated on Wednesday. A further Trance 2 payment of US$171.2M is payable by 30 June 2025 (with an interest rate of 2% until then.)

This comes after the stock has been suspended ever since October 2023 when a by-then-already collapsed lithium price sent shockwaves throughout the industry.

Funds will be distributed to shareholders in January of next year, the company reported.

Investors, furthermore, will get a look at the company’s half year finances, now that the deal is complete.

“As a consequence of Completion occurring, the Company is now in a position to finalise and publish its financial results for the half-year ended 30 June 2024. It is anticipated that these results will be published in early December,” the company wrote.

LLL last traded at 50cps and is currently suspended.

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