Novonix, Lithium Energy to spin off graphite mining unit
Make us a preferred source
Make us a preferred source on Google
The news: Battery technology company Novonix and miner Lithium Energy have agreed to merge and spin off their adjoining graphite mining holdings in Queensland.
The numbers: Under the deal, Novonix’s Mount Dromedary graphite deposit will be combined with Lithium Energy’s adjacent Burke deposit into Axon Graphite, which will raise between $15 million and $25 million through an initial public offering to list on the ASX. Novonix and Lithium Energy will each hold a 28.57% stake in Axon post-listing.
Novonix shares were down 1.6% to $0.92, while Lithium Energy shares rose nearly 3% to $0.53 in early ASX trading.
The context: The two companies said the combination of their graphite mining assets would provide significant operational synergies and economies of scale and also help advance production of highly refined grade natural graphite for electric vehicles and energy storage systems.
Axon will also consider development of a vertically integrated manufacturing facility in Queensland. The Axon prospectus is expected to be issued in six to eight weeks.
The sources: ASX announcement, ASX announcement
