Lithium Energy (ASX:LEL) announces that CNGR Advanced Materials’ (SZSE:300919) subsidiary, CNGR Netherlands, has secured all Chinese regulatory approvals to purchase Lithium Energy’s Solaroz Lithium Brine Project in Argentina.
Given prevailing market conditions and financial requirements to bring the Solaroz Project into production, Lithium Energy believed it is in the shareholders best interest to sell its 90% interest in the Solaroz Project for US$63 million ($97 million).
Lithium Energy, which has a market capitalisation of $45.92 million, says the sale will be complete after several conditions precedent have been satisfied.
These conditions include receiving Lithium Energy shareholder approval, regulatory approvals in Argentina, and receipt of environmental and concession related approvals relating to Solaroz.
A general meeting to seek shareholder approval will be held late this month.
Lithium Energy says the conditions are to be satisfied within six months after the sale agreement date. The date may be extended by 60 days by either party.
CNGR is one of the world’s largest producers of precursor cathode active materials used by many companies in the battery materials supply chain.
The Solaroz Lithium Brine Project covers 12,000 hectares and lies within the Solar de Olaroz Basin in South America’s ‘Lithium Triangle’ in north-west Argentina
Write to Aaliyah Rogan at Mining.com.au
Images: Lithium Energy
