Elevra Lithium sold its Ghanaian Ewoyaa interest
Key points
- Elevra Lithium completed the sale of its full interest in the Ewoyaa Lithium Project in Ghana to Zhejiang Huayou Cobalt for US$71 million in cash before fees and taxes.
- Following the announcement, Elevra shares moved up to $3.56 in market trading.
- The transaction eliminates all project funding commitments, allowing the company to focus capital on expanding its core North American lithium operations.
North American lithium producer Elevra Lithium (ASX:ELV) completed the sale of its rights and interests in the Ewoyaa Lithium Project in Ghana to Zhejiang Huayou Cobalt for US$71 million in cash before fees and taxes.
The deal follows required Ghanaian government regulatory approvals and relieves the company of any further development funding commitments for the African site.
Elevra’s Managing Director and CEO Lucas Dow said, "Completing the sale of our Ewoyaa interest to Huayou delivers our goal of improving our financial flexibility while removing the development funding obligations attached to the project and simplifying our portfolio."
The sale encompasses all spodumene concentrate offtake rights, while Huayou independently progresses its proposed acquisition of Atlantic Lithium for the remaining private-sector interest.
Following the announcement, the Elevra Lithium share price was up at $3.56.
Net cash proceeds from the divested asset will provide additional financial flexibility as the business advances its North American Lithium brownfield expansion.
The business continues to shift capital towards its primary operational priorities in Canada, including development activities at its Moblan Project.
