Pantera Lithium’s (ASX:PFE) shares have surged 116.66% to $0.026 at 11.45am AEST, on the back of entering into a binding agreement with privately held Energy Exploration Technologies to sell the Smackover Lithium Brine Project in the US.
As part of the deal, Energy Exploration will acquire Pantera’s wholly owned subsidiary Daytona Lithium, which holds the 35,000 acres of lithium mineral leases in Smackover.
Energy Exploration will pay $6 million in cash payable via three installments, as well as issue $34 million worth of shares priced at US$9.50 ($14.55) per share. These shares will be held by Pantera until either both companies agree to an in-specie distribution or Energy Exploration files for an initial public offering.
The transaction is expected to be completed in early October 2025, subject to satisfying certain conditions precedent.
Executive Chairman Barnaby Egerton-Warburton says this transaction confirms the potential of the Smackover Project.
“This deal allows Pantera to retain strong exposure to the Smackover play, which is now the most sought-after lithium province in the US, while also gaining exposure to EnergX’s large-scale project Black Giant in Chile, a project which is well advanced and targeting production in 2027,” Egerton-Warburton says.
Energy Exploration CEO Teague Egan says this acquisition represents a transformative milestone as the company continues to redefine the global lithium supply chain.
“By vertically integrating a world-class lithium resource with our advanced LiTAS direct lithium extraction technology platform, we will accelerate our roadmap in building project Lonestar to become a full-spectrum, low-cost lithium producer,” Egan says.
Pantera notes this capital injection enhances its ability to pursue activities in critical mineral sectors without immediate dilution. The company is currently reviewing several global critical mineral projects to enhance value.
Energy Exploration Technologies is focused on delivering innovative solutions for lithium extraction, refining, energy storage, and sustainable materials.
Write to Aaliyah Rogan at Mining.com.au
Images: Pantera Lithium
