Mali Lithium is in the final stages of concluding the Morila acquisition. The company paid a US$1 million deposit to the vendors on 16 September 2020.
This payment was a requirement outlined in the sale and purchase agreement. The acquisition is subject to the company raising a minimum of US$25 million before the closing date, and receiving no objection to the transaction from the government of Mali. The transaction is scheduled to close on 31 October 2020.
On 7 September 2020 the Mali Lithium announced a placement of A$64 million (US$45.5 million) in two tranches to institutional and sophisticated investors. The first tranche of A$7.6 million (US$5.4 million) has been completed and the balance of A$56.4 million (US$40.1 million) is subject to shareholder approval at shareholders general meeting to be held on 23rd October 2020. A share purchase plan to raise up to A$6 million (US$4.3 million) has also been launched.
To date, no objections have been received from the Malian government. Both the company and Barrick Gold Corporation have been in contact with government providing information on arrangements regarding worker entitlements and future employment at Morila, the continuity of community programmes as well as plans for Mali Lithium to re-establish open pit mining at Morila. According to the company, so far discussions have been positive with no objections raised.
Mali Lithium is working closely with Barrick on handover of the asset scheduled for the end of October. Key handover items currently being discussed are labour, IT, insurance, banking, accounting, and financial reporting among others.