The sale of the Solaroz Lithium Brine Project in Argentina by Lithium Energy Ltd (ASX:LEL) (Lithium Energy Ltd (ASX:LEL)) has taken a step towards completion with the project buyer, CNGR Netherlands New Energy Technology B.V. (CNNET), receiving all necessary Chinese overseas direct investment and foreign exchange control regulatory approvals.
Lithium Energy is working towards the completion of the sale of 90% interest in the Solaroz Project to CNNET for consideration totalling US$63 million (~A$97 million) cash.
Read more: Lithium Energy agrees to sell Solaroz Lithium Project for A$97 million
CNNET is a subsidiary of Chinese-listed CNGR Advanced Material Co Ltd, one of the world's largest producers of battery precursor cathode active materials used by many leading companies in the battery materials supply chain.
The sale will be completed once a number of conditions precedent are satisfied, including Lithium Energy shareholder approval, receipt of regulatory approvals in China and Argentina, and receipt of environmental and concession-related approvals relating to the Solaroz Project.
The Lithium Energy board expects to convene a general meeting to seek shareholder approval for the proposed sale, to be held in late July 2024.
Previously commenting on the transaction, Lithium Energy executive chairman William Johnson said, "The transaction will remove the company’s funding and development risks associated with the project while delivering the company a very substantial cash balance.
"Post completion, the company will have the capital required to consider investment opportunities in the battery minerals area. The board will also give consideration to a potential distribution to shareholders."