Lithium Energy sells graphite projects for $20M

Australian critical minerals player Lithium Energy (ASX:LEL) has struck a definitive share sale and purchase agreement to sell its 100% interest in the Burke, Mt Dromedary, and Corella graphite projects to M Battery Materials.

The transaction, valued at $20 million, comprises a $5 million cash payment and $15 million in MBM shares.

The divestment aligns with MBM’s push to list on the ASX as a dedicated battery materials specialist.

MBM plans to launch an initial public offering aiming to raise a minimum of $15 million.

Led by industry veterans Matt Latimore and Gerhard Redelinghuys, MBM will leverage the broader M Resources Group ecosystem to develop its consolidated Queensland graphite and vanadium footprint.

Subject to regulatory and shareholder approvals, Lithium Energy intends to execute an in-specie distribution, passing the consideration shares directly to its own shareholders prior to the ASX debut.

If successful, and assuming a full 100% distribution alongside MBM’s minimum capital raise, Lithium Energy shareholders will collectively hold a commanding 33.33% aggregate stake in the newly listed vehicle.

Lithium Energy also intends to subscribe for further shares under the upcoming IPO.

At the time of reporting, Lithium Energy’s share price was $0.335.