Lithium Energy Limited (ASX:LEL) has granted a short extension for the completion of Tranche 1 of its Solaroz Lithium Brine Project sale to CNGR Netherlands New Energy Technology B.V. (CNNET). The original Tranche 1 Completion Date of April 24, 2025, has been moved to April 30, 2025, following advice from CNNET regarding logistical challenges, including visa issues for key personnel needing to travel to Argentina to finalize the deal.
The Solaroz Sale involves the sale of Lithium Energy’s 90% interest in the Solaroz Project in Argentina for a total of US$63 million (~A$97 million). The sale is structured in two tranches. Tranche 1 includes the transfer of a 39.9% shareholding in Solaroz S.A. (which owns the Solaroz Project) and the assignment of a US$12 million loan. Lithium Energy will retain a 50.1% shareholding until Tranche 2. Tranche 2 will involve the transfer of the remaining 50.1% of Lithium Energy’s shareholding in Solaroz and the assignment of the outstanding loan balance, scheduled for completion on January 9, 2026.
CNNET is a subsidiary of CNGR Advanced Material Co Ltd, a major global producer of precursor cathode active materials. The delay, while short, underscores the complexities involved in international transactions, particularly in the resource sector. Investors will be watching closely to see if the new deadline is met, as the successful completion of the Solaroz Sale is a significant event for Lithium Energy, providing a substantial cash injection. The company has not indicated any anticipated changes to the overall terms of the agreement beyond the date extension.
