Lithium Energy Limited (ASX:LEL) Announces Amended Solaroz Sale and Axon Graphite Spin-Out
Amended Solaroz Sale Agreement
Lithium Energy Limited (ASX:LEL) and CNGR have agreed to amend the sale of the Solaroz Lithium Brine Project, which will now be completed in two tranches in April 2025 and January 2026. The total purchase price remains unchanged at US$63 million.
Environmental and Financial Milestones
On 23 December 2024, Lithium Energy received Environmental Impact Assessment approvals for further exploration at the Mario Angel and Payo concessions. The company also secured a US$6 million second deposit from CNGR on 20 January 2025.
Axon Graphite Limited IPO and Spin-Out
Lithium Energy is preparing to spin out Axon Graphite Limited through an IPO. A General Meeting is scheduled for 7 February 2025 to approve the proposed spin-out, which aims to establish a vertically integrated battery anode material manufacturing business in Queensland.
ASX Trading Suspension
ASX has suspended trading of Lithium Energy’s securities since 25 October 2024 due to insufficient operations related to the Solaroz sale. The suspension will remain until the company meets ASX’s operational requirements or complies with listing rules.
Future Outlook
Lithium Energy will continue advancing operations at Solaroz until the sale’s completion in January 2026, pursue the Axon Graphite IPO, and explore new investment opportunities in the battery minerals sector across Australia and the Americas.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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