Leo Lithium Limited (ASX:LLL) has announced it will monetise its remaining assets and return all net proceeds to shareholders. Leo Lithium is an Australian company focused on developing lithium projects. The company previously returned $207 million to shareholders in January 2025 and is now planning to distribute an additional $330 million before the end of the year.
The distribution will be split into two tranches. The first, a dividend of $265 million (22 cents per share), is scheduled for payment on 14 October 2025, with a record date of 3 October 2025. This dividend comprises a franked portion of $4.8 million (0.4 cents per share) and an unfranked portion of $260.2 million (21.6 cents per share). The second distribution, projected at $65 million (5.4 cents per share), is expected to be a combination of a capital return and an unfranked dividend.
To facilitate the capital return component of the second distribution, Leo Lithium will convene a shareholder meeting to seek approval. The company is also engaging with the Australian Taxation Office (ATO) to obtain a class ruling on the tax implications for shareholders. Furthermore, Leo Lithium intends to monetise its Trailing Product Sales Fee (TPSF) and return the net proceeds, along with any surplus cash, to shareholders as a third distribution, anticipated to be a capital return.
Leo Lithium has terminated its previous strategy to acquire a new asset and relist on the ASX. As a result, the company has commenced a restructuring process to align its organisation with the new strategy. The company has also terminated the 2025 equity incentives, as the vesting conditions are no longer achievable. Shareholders are encouraged to update their contact and payment details with Computershare to ensure efficient distribution of the funds.
