Firefinch Limited announced the execution of a binding term sheet (Term Sheet) with a subsidiary of the large lithium producer by production capacity, Jiangxi Ganfeng Lithium Co. Ltd. (Ganfeng), to establish a 50:50 incorporated joint venture (JV) to develop and operate the world-class Goulamina Lithium Project (Goulamina) (Transaction). Ganfeng will make cash investments of $130 million (Subscription Amount).

The funds will be invested into Mali Lithium BV (MLB), which will hold Firefinch's interest in Goulamina and in return, Ganfeng will earn a 50% JV interest in MLB. These funds, together with up to $64 million in debt funding, which is to be arranged by Ganfeng (Ganfeng Debt), are expected to fund Goulamina into production. The Goulamina Definitive Feasibility Study (DFS) envisages production to average 436,000 tonnes per annum of high quality spodumene concentrate for an initial 23-year mine life.

This equates to approximately 64,700 tonnes per annum of Lithium carbonate equivalent (LCE). This production profile will make Goulamina one of the world's premier lithium producers. It is expected that FID will be reached within 6 months of the Transaction completing.

To provide further support for Goulamina, Ganfeng has agreed to enter into an offtake agreement for up to 100% of spodumene concentrate product produced at Goulamina across the life of mine. Ganfeng will receive offtake rights to 50% of the offtake on FID and the receipt of the Final Investment. To ensure Goulamina is developed in a timely manner, the remaining 50% of offtake will be assigned to Ganfeng, subject to the provision of Ganfeng Debt and Goulamina reaching commercial production within four years of the Transaction completing.

Firefinch will be the operator and manager of Goulamina with assistance from Ganfeng in processing and other disciplines. The Transaction remains subject to the satisfaction of relevant conditions precedent .