Lithium Energy Ltd (ASX:LEL) and NOVONIX Ltd have each completed due diligence and agreed to proceed in combining their natural graphite exploration interests into a new company, Axon Graphite Ltd.
Ahead of the proposed IPO of Axon Graphite, LEL will acquire NOVONIX’s Mt Dromedary Graphite Deposit, which is directly adjacent to LEL’s Burke Graphite Deposit in Queensland.
Combining Lithium Energy’s Burke and NOVONIX’s adjoining Mt Dromedary high-grade graphite deposits creates the potential for significant operational synergies and economies of scale in the development of a vertically integrated BAM Manufacturing Facility in Queensland.
The spin-out is subject to the completion of the proposed IPO of Axon Graphite and its admission to the ASX.
Axon Graphite plans to raise $20 million through the IPO, with a minimum subscription of $15 million and oversubscriptions of up to $5 million (for $25 million in maximum subscriptions) at an issue price of $0.20 per share.
The Prospectus for the IPO of Axon Graphite is expected to be lodged within the next four to six weeks. Its proposed ASX code is AXG.
NOVONIX nominees Admiral Robert Natter (US Navy, Ret.) and Tony Bellas have been appointed to the board of Axon Graphite, joining Lithium Energy directors Farooq Khan and William Johnson. An independent chair will also be appointed to the Axon board.
Post successful completion of the Axon Graphite IPO (assuming a $20 million raising), Lithium Energy and NOVONIX will each hold a 25% cornerstone equity holding in Axon Graphite.