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- Elevra has sold its Ewoyaa Project interest for US$71 million in cash.
- Proceeds will fund growth, focus on North American assets.
- Transaction to be completed by the end of Q1FY27.
Elevra Lithium (ASX:ELV) has signed a definitive agreement to divest from the Ewoyaa Lithium Project in Ghana, selling its interest to China’s Zhejiang Huayou Cobalt Co. for around $US$71 million in pre-tax cash.
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Markets seemed to like the sale, with ELV shares up nearly +3% through what has largely been a very red day for the Australian share market to lunchtime.
The transaction, which is now expected to close by Q1 FY27, includes the sale of all of Elevra’s rights and interests in the project, as well as its associated offtake rights. This move follows a separate binding deed between Huayou and Atlantic Lithium, where Huayou is paying $210M for Atlantic’s interests.
Elevra does hold ~32.5 million shares in Atlantic Lithium – a 4.1% stake – but the company has today noted the sale of its specific project interests is not contingent upon the completion of Huayou’s acquisition of Atlantic.
The sale of any interest in the Ewoyaa project “improves financial flexibility” and will now allow Elevra to tighten up strategic focus on North American assets, CEO and managing director Lucas Dow explained today.
“Importantly, it removes onerous obligations and simplifies our portfolio by eliminating the structural complexities… with Ewoyaa’s ownership structure,” he said.
“The US$71M in gross proceeds will underpin further balance sheet flexibility as we pursue near-term development activities that will strengthen our position as a leading North American lithium producer.”
The transaction’s completion does remain subject to all customary Ghanaian regulatory approvals, though Elevra has said it anticipates clearing those soon.
BMO Capital Markets has served Elevra as financial advisor through the deal.
ELV last sold at $13.90/share on Monday.
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