Elevra Lithium purchases Moblan offtake rights

Elevra Lithium (ELVR) announced that it has purchased and terminated the spodumene concentrate offtake agreement previously granted to an investment vehicle managed by Waratah Capital Advisors in respect of the Moblan lithium project. Moblan is owned 60% by Elevra and 40% by Investissement Quebec. Following completion of the transaction, Elevra now controls 100% of its pro-rata offtake entitlement from Moblan. The terminated offtake agreement originated under an October 2021 agreement between Sayona Mining and Waratah which granted Waratah the right to purchase 10% of Sayona’s ownership participation in Moblan’s annual spodumene concentrate production on a life of mine basis priced at a 5% discount to prevailing market prices. Elevra and Waratah have executed an agreement to terminate the offtake agreement and related delivery obligations. In consideration of the termination of the offtake agreement, Elevra has agreed to issue Waratah: $5M in Elevra Lithium ordinary shares and $500,000 in options which are exercisable at a 50% premium to the issue price of Elevra’s ordinary shares issued under this agreement. The shares will be issued using existing placement capacity and will rank equally with existing Elevra ordinary shares, while the options are exercisable 120 days after closing and up to the third anniversary of the date of closing.