Elevra Lithium (ASX:ELV) announced on 12 May 2026, it has successfully purchased and terminated the spodumene concentrate offtake agreement previously held by an investment vehicle managed by Waratah Capital Advisors Ltd. Elevra Lithium Limited is a North American lithium producer with projects in Québec, Canada, and the United States. It holds assets including North American Lithium (100%), a 60% stake in the Moblan Lithium Project, and the Carolina Lithium project (100%). This strategic move means Elevra now controls 100% of its pro-rata offtake entitlement from the Moblan Lithium Project, an asset 60% owned by Elevra and 40% by Investissement Québec. The company anticipates this will enhance future value realisation from one of North America’s prominent lithium assets.
The terminated Offtake Agreement stemmed from an October 2021 arrangement between Sayona Mining and Waratah. This granted Waratah the right to acquire 10% of Sayona’s ownership participation in Moblan’s annual spodumene concentrate production for the life of the mine, priced at a 5% discount to prevailing market rates. In consideration, Elevra agreed to issue Waratah US$5 million in Elevra Lithium ordinary shares, priced at A$12.20 per share, along with US$0.5 million in options. These options are exercisable at a 50% premium to the ordinary share issue price, becoming active 120 days post-closing (12 May 2026) and valid for three years from the closing date. The shares will be issued utilising existing placement capacity and will rank equally with existing ordinary shares.
Elevra stated this repurchase significantly strengthens its long-term commercial position at Moblan by eliminating a life-of-mine sales commitment subject to a market discount. With 100% control over its attributable Moblan offtake, the company gains increased flexibility in structuring future supply agreements and pursuing financing opportunities. Elevra’s Chief Executive Officer and Managing Director, Lucas Dow, commented, “The original agreement represented a life of mine commitment at a discounted market price. As we explore developing Moblan as a larger project, purchasing the Moblan offtake presented an opportunity to enhance the long-term economics and strategic flexibility of the project, achieved through an equity-based transaction which preserves cash as we advance development planning.”
