Elevra Lithium sells WA pegmatite rights as it ramps up NAL activity

• Sale of WA interest to Wildcat completed
• Receives $16M for sale of full ownership
• Major focus on North American Lithium assets

Elevra Lithium (ASX:ELV) has completed a transaction with Wildcat Resources (ASX:WC8) regarding the licence E45/2364 and the Tabba Tabba pegmatite project in WA as it ramps up its North American assets.

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The North American lithium producer has sold all of its rights, interests and obligations associated with E45/2364 to Wildcat, with the latter assuming full ownership, control and liability of those rights, interests and obligations.

Pursuant to the terms of the transaction, Elevra will receive total consideration of $16 million plus an ongoing royalty comprising the following:

• $5 million in cash payable on completion;

• $8 million in Wildcat ordinary shares, issued at a price of $0.353 per share;

• $3 million in deferred cash payable six months after Wildcat announces a completed feasibility study for the Tabba Tabba project; and

• Contingent cash payments of A$0.70 per tonne for each tonne of JORC pegmatite mineral resource announced by Wildcat within E45/2364.

MD, Lucan Dow, said this combination of guaranteed and contingent payments provides it with ongoing exposure should Wildcat have exploration success on E45/2364 while allowing the company to realise immediate value.

“This transaction delivers an attractive outcome for Elevra by unlocking immediate value from a non-core asset through a cash payment which can be reinvested in near-term growth initiatives,” Mr Dow said.

“The structure also allows Elevra to benefit if any pegmatite mineralisation is discovered on E45/2364. The transaction further simplifies our portfolio and allows us to maintain our focus on executing our North American growth strategy, including the NAL Brownfield Expansion and the advancement of our development pipeline.”

In North America Elevra’s assets comprise North American Lithium (100%), a 60% stake in the Moblan lithium project in Central Québec and the Carolina Lithium project (100%) in the US.

The sale of Tabba Tabba comes after Elevra turned in another strong operational performance in North America, establishing monthly production records and a strategic financing package that enables near-term growth.

ELV was steady at $7.86 with a Mkt cap of $1.524B prior to markets opening.

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