The Board of Firefinch Limited (ASX:FFX) announced the spin-off of a 80% stake in Goulamina Lithium Project on February 9, 2021. Under the terms, Firefinch shareholders being rewarded with free shares in the new entity, Leo Lithium Limited proportional to their existing holding. Firefinch to retain up to 20% of Leo Lithium shares following the demerger. Firefinch will raise approximately AUD 46.9 million by issuing new 117 million shares at AUD 0.4 per share to support spin-off. Firefinch intends to progress a demerger of Goulamina into a separate lithium focused company which is expected to be listed on ASX in 2021. Simon Hay, former Chief Executive Officer of Galaxy Resources, to join Leo Lithium as Managing Director with effect from January 10, 2022. This transaction is subject to meeting ASX listing requirements and securing required regulatory including Chinese regulatory approvals, shareholder and other required approvals. Shareholder Meeting to approve demerger targeted for February 2022. Leo Lithium is expected to list on ASX by the end of the March Quarter 2022. Demerger will be implemented in February 2022. As of October 25, 2021, transaction will be completed in early 2022. Firefinch will now proceed with the demerger of Goulamina. Firefinch Limited advise that a general meeting of shareholders will be held on May 31, 2022. Under the Demerger, subject to shareholder approval, Eligible Firefinch Shareholders at the Demerger Record Date (June 6, 2022) will retain their Firefinch Shares and will also receive Leo Lithium Shares on a 1 for 1.4 basis. In connection with the Demerger, Leo Lithium intends to undertake the following offers set out below and to apply for admission to the Official List and for quotation of the Leo Lithium Shares on ASX. AS per disclosure of May 31, 2022, all conditions to the Demerger, with the exception of Firefinch shareholder approval (to be sought at a general meeting to be held later today) have now been satisfied. As on May 31, 2022, Firefinch shareholders approved the transaction. The deal is expected to close on June 9, 2022.

Firefinch Limited (ASX:FFX) completed the spin-off of a 80% stake in Leo Lithium Limited (ASX:LLL) on June 21, 2022. The conditions precedent to the Demerger have been satisfied without waiver.