Lithium Energy sells Solaroz stake for US$63 million
–News Direct–
Lithium Energy Ltd (ASX:LEL) executive chairman William Johnson sits down with Proactives Jonathan Jackson to discuss the sale of its 90% stake in the Solaroz Lithium Brine Project in Argentina for up to US$63 million (~A$97 million). The binding Share Sale Agreement was made with CNGR Netherlands New Energy Technology B.V., a subsidiary of CNGR Advanced Material Co Ltd. This transaction values Lithium Energy's shares at A$0.865 each, a 79% and 52% premium over its three-month and one-month VWAP, respectively. Johnson notes that this decision followed a strategic review and multiple offers, reflecting significant value creation since the companys IPO in May 2021, when shares were priced at $0.20. The sale aims to eliminate development and funding risks and boost the companys cash reserves, enabling future investments in battery minerals. The board is also considering a potential shareholder distribution following the sales completion. CNGR will pay a US$1.8 million deposit, with the remainder due as follows: US$53.7 million at completion, US$3 million held in escrow for two years, and US$4.5 million in deferred payments contingent on future lithium prices. The transaction includes selling Lithium Energy's shares in Solaroz S.A. and a loan assignment, with completion expected in the fourth quarter of 2024, pending shareholder and regulatory approvals. This sale is part of Lithium Energys broader strategy to realign its investment focus within the battery minerals sector, following the completion of the Solaroz sale and the proposed spin-out and IPO of Axon Graphite Limited.
Contact Details
Proactive Investors
Jonathan Jackson
+61 413 713 744
View source version on newsdirect.com: https://newsdirect.com/news/lithium-energy-sells-solaroz-stake-for-us-63-million-946377868
LITHIUM ENERGY LIMITED
COMTEX_451795319/2655/2024-05-02T15:33:12
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