Australia’s Leo Lithium will sell its remaining assets and return at least A$330 million (US$220 million) to shareholders, with the terms of the capital return to be finalized in coming weeks.
The decision follows pressure from Firefinch, Leo’s largest shareholder, which has sought to remove four directors. The company said a shareholder vote on the motion is scheduled for Nov. 12.
The amount, about 27.4¢ per share, is in addition to the A$207 million returned to shareholders in January, the company said in its filing. The payout stems largely from Leo’s exit from the Goulamina lithium project in Mali, after selling its 40% stake in the project to China’s Ganfeng Lithium.
Leo’s wind-down underscores the sharp downturn in lithium prices since 2022, which has left many juniors struggling for funding and vulnerable to consolidation.
Delisting
The miner is also facing automatic delisting from the ASX on Sept. 22 after nearly two years of suspended trading. Talks about a potential re-listing continue, the company said.
Leo said it would keep “a small amount of cash” to secure a sale of its only remaining asset, a trailing product sales fee. Proceeds from that sale, along with any surplus cash, will be returned to shareholders in a third distribution.
The company was spun off from Firefinch in 2022 to develop Goulamina in a joint venture with Ganfeng.
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