(Corrects paragraph 3 to show Ganfeng has a project in Mexico,not Canada) * Goulamina stake firm's first foray into Africa * Mali government has right to take 10% for free * Firefinch says mine has high-quality lithium asset By Tom Daly June 14 (Reuters) - Ganfeng Lithium Co , one of the world's biggest lithium producers, said onMonday it would pay $130 million for a stake in the Goulaminahard-rock mine in Mali and take at least half of its first-phaseoutput. The purchase marks the Chinese firm's first investment inlithium mining in Africa as it seeks to expand production forthe commodity used in electric-vehicle batteries. Ganfeng, which has projects in China, Mexico, Australia,Argentina and Ireland, said in a filing it would take a 50%stake of a special purpose vehicle set up by Goulamina's currentlicence holder, Australia-listed Firefinch Ltd , thatwill fully own operating company Lithium du Mali SA.
The filing said Mali's government had the right to take 10%of the equity free of charge and pay in cash for up to 10% more. Firefinch said Goulamina, which lies about 150 km (93 miles)by road south of Mali's capital Bamako, was "one of the world'shighest quality lithium assets."
A feasibility study was completed last year but it was notimmediately clear when production would start.
The project has 108.5 million tonnes of resources andhigh-grade spodumene concentrate, Firefinch said in apresentation last month. Spodumene is a lithium-rich mineralthat can be converted into battery-grade lihium products. Ganfeng said it would acquire offtake rights to 50% offirst-phase annual production capacity of 455,000 tonnes ofspodumene concentrate but may obtain 100% if it helps Lithium duMali raise debt or gives financial assistance.
The Chinese company might help raise at least $64 millionfrom banks or other financial institutions for development andconstruction of the mine, and might also opt to provide up to$40 million in direct financial assistance, the filing said. Ganfeng signed an initial five-year deal in December to buyspodumene concentrate from the Manono mine in the DemocraticRepublic of Congo but did not take an equity stake. (Reporting by Tom Daly; Editing by Edmund Blair)
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