Lithium Energy Ltd has received US$26 million in cash following the completion of Tranche 1 of the staged US$63 million (approximately A$97 million) sale of its interest in the Solaroz Lithium Brine Project in Argentina to CNGR Netherlands New Energy Technology B.V. (CNNET), a subsidiary of CNGR Advanced Material Co. Ltd.
Tranche 1 involved the transfer of a 39.9% stake in Solaroz S.A.—the holding company for the Solaroz Project—and the assignment of a US$12 million loan previously provided by Lithium Energy to Solaroz.
Including prior deposits of US$7.8 million made by CNNET, the total amount received by Lithium Energy under Tranche 1 now stands at US$33.8 million (approximately A$52 million).
Tranche 2, covering the sale of the remaining 50.1% interest in Solaroz and the balance of the loan receivable, is scheduled for completion on 9 January 2026. At that time, CNNET will pay a further US$21.7 million (approximately A$33.4 million).
Additional contingent payments under the sale agreement include:
- US$3 million to be placed in escrow on completion of Tranche 2, to be held for one year and released to Lithium Energy on 8 January 2027;
- US$4.5 million in deferred consideration, payable if the Benchmark Lithium Carbonate Price exceeds US$23,000 per tonne for any four-month period between 29 April 2025 and 8 January 2027.
Following Tranche 1, CNNET will appoint two representatives to the board of Solaroz S.A., while Lithium Energy retains board control, including the President's casting vote.