Elevra Lithium Offloads Tabba Tabba Interests for $16 Million
Synopsis
The miner has divested its E45/2364 pegmatite interests in Western Australia to Wildcat Resources, using the proceeds and future royalties to accelerate its North American lithium strategy.
Key Highlights
- Elevra Lithium has ended an agreement to sell its interest in the Tabba Tabba tenement for a $16 million package to Wildcat Resources.
- The deal consists of $5 million in cash, $8 million worth of Wildcat shares and $3 million deferred cash.
- A royalty over future pegmatite mineral resources at the project will be retained by Elevra.
- The company will use the auction amount to finance its North American lithium projects.
Elevra Lithium (ASX: ELA) has executed a binding sale agreement for the transfer of all rights and liabilities in the E45/2364 Tabba Tabba tenement in Western Australia to Wildcat Resources (ASX: WIL, $10.19m), for consideration of up to $16 million. The project is neighbouring Wildcat Resources’ flagship Tabba Tabba lithium project.
The deal is worth $5 million in cash, $8 million in Wildcat shares and $3 million in deferred cash. Wildcat will also hand over a A$0.70 per tonne royalty to Elevra for any pegmatite mineral resource defined by Wildcat on the tenement.
The divestment is part of Elevra’s ongoing strategy to offload non-core assets and focus on its North American lithium business after the prior sale of its Ewoyaa asset.
Focus Turns to North American Projects
Elevra said the proceeds from the transaction will be directed toward its key North American assets, including the North American Lithium operation in Québec, the Moblan Lithium Project and the Carolina Lithium Project in the United States.
The company said the sale streamlines its portfolio while allowing it to benefit from any future pegmatite mineral discoveries on the Tabba Tabba tenement through the royalty arrangement.
Managing Director and Chief Executive Lucas Dow said the transaction unlocks immediate value from a non-core asset while supporting the company’s near-term growth plans.
He added that Elevra remains focused on advancing its North American growth strategy, including the NAL Brownfield Expansion and the continued development of its project pipeline.
Source: Motley Fools
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