Lithium Energy (ASX:LEL) has sold its 90% interest in the Solaroz Lithium Brine Project in Argentina for US$63 Million ($97 million) in cash.
The company has entered into a binding share sale agreement with CNGR Netherlands New Energy Technology, a subsidiary of CNGR Advanced Material (Shenzhen:300919), one of the world’s largest producers of precursor materials in the battery materials supply chain.
Lithium Energy expects to convene a general meeting to seek shareholder approval for the proposed sale in Q2/Q3 2024.
Executive Chairman William Johnson says the proposed sale follows the conclusion of a formal process initiated by the company to seek a strategic partner for the development of Solaroz.
At the end of this process, taking account the multiple offers received and current market conditions, the company has determined the best course of action is the sale of its interest.
“The transaction will remove the company’s funding and development risks associated with the project while delivering the company a very substantial cash balance. Post completion, the company will have the capital required to consider investment opportunities in the battery minerals area.”
The proposed transaction comes a week after Lithium Energy and NOVONIX agreed to amend the agreement acquire NOVONIX’s Mt Dromedary Graphite Deposit, to provide for a short extension of the due diligence period to 1 May 2024.
The spin-out and $15 million to $25 million IPO of Axon Graphite is advancing parallel to the due diligence process.
Write to Adam Orlando at Mining.com.au
Images: Lithium Energy
