Curated News
By: NewsRamp Editorial Staff
May 02, 2024

Lithium Energy Sells Solaroz Stake for US$63 Million

Reddit Discuss on Substack View History of this news story on GitHub
Source News Release

TLDR

  • Lithium Energy Ltd sells 90% stake in Solaroz Lithium Brine Project for up to US$63 million, reflecting significant value creation since IPO.
  • The sale includes a binding Share Sale Agreement with CNGR Netherlands New Energy Technology B.V., valuing shares at A$0.865 each.
  • The sale aims to eliminate development and funding risks, boost cash reserves, and enable future investments in battery minerals, making the company more financially secure.
  • The sale reflects the company's broader strategy to realign its investment focus within the battery minerals sector, showing adaptability and strategic planning.

Impact - Why it Matters

The sale of Lithium Energy's stake in the Solaroz Lithium Brine Project is significant as it reflects the company’s strategic shift to focus on battery minerals and eliminate development and funding risks. This impacts the company's cash reserves and future investments, potentially leading to new opportunities in the battery minerals sector. The sale also indicates the company's ability to create significant value since its IPO in 2021, reflecting positive growth and potential for future shareholder distribution.

Summary

Lithium Energy Ltd (ASX:LEL) has sold its 90% stake in the Solaroz Lithium Brine Project in Argentina for up to US$63 million (~A$97 million) to CNGR Netherlands New Energy Technology B.V., a subsidiary of CNGR Advanced Material Co Ltd. This strategic decision reflects significant value creation since the company’s IPO in May 2021, with the sale aimed at eliminating development and funding risks and boosting the company’s cash reserves for future investments in battery minerals. The transaction includes a US$1.8 million deposit, with the remainder due at completion, and the sale is part of Lithium Energy’s broader strategy to realign its investment focus within the battery minerals sector.

Source Statement

This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Lithium Energy Sells Solaroz Stake for US$63 Million

blockchain registration record for the source press release.