Leo Lithium Limited (ASX:LLL) Announces Sale Proceeds Distribution
Distribution of Sale Proceeds
Leo Lithium Limited (ASX:LLL) plans to distribute A$0.172 per share to shareholders in January 2025. This distribution will consist of approximately A$0.014 in capital return and an unfranked dividend of around A$0.158 per share from the proceeds of the sale of the company’s 40% stake in Mali Lithium BV to GFL International Co., Ltd (Ganfeng). The company has received a total of US$116.3 million in net payments, along with additional contributions totaling A$11.5 million from Firefinch Limited.
The exact amount of the capital return will depend on recent feedback from the Australian Tax Office (ATO) regarding a Class Ruling. The Proposed Capital Return will require shareholder approval in a meeting scheduled for mid-January 2025. If the resolution is not approved, the Special Dividend will be adjusted to reflect the amount that would have been returned as capital.
Future Planning and Tax Implications
The Record Date for determining eligible shareholders is anticipated to be 23 January 2025, with payments expected by 31 January 2025. Details regarding the tax implications for shareholders will be provided in the forthcoming Notice of Meeting.
Leo Lithium has outlined future capital management plans concerning the second tranche of consideration from the MLBV sale. If no suitable investment opportunities are identified, any undistributed net Tranche 2 consideration will also be paid to shareholders in July 2025.
Regulatory Updates
The company has noted the ASX’s ongoing concerns about its trading status, primarily due to compliance issues relating to Listing Rules. Leo Lithium intends to re-engage with the ASX upon resolving these matters post-sale.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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