M4E Lithium, a lithium exploration company in Brazil, closed a financing package with Lithium Royalty Corp. (LRC) and the Watarah Electrification and Decarbonization fund managed by the Waratah Capital Advisors, the company announced March 14.
The financing package consists of a $6 million equity investment from Waratah E&D Fund and a $1.5 million payment for a 1.5% royalty on future production from LRC. An additional $2 million payment will be triggered upon confirmation of a minimum tonnage of lithium resources by M4E.
The package also includes an offtake agreement exercisable for $500,000, enabling the Waratah E&D Fund the right to purchase 10% of M4E’s future lithium production at market prices.
This investment significantly advances exploration across M4E’s expansive 91,000 hectares of mining rights in the prolific Lithium Valley and Borborema regions of Brazil.
Recommended Reading
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.
Permian Resources Adds More Delaware Basin Acreage
2024-05-07 - Permian Resources also reported its integration of Earthstone Energy’s assets is ahead of schedule and raised expected annual synergies from the deal.
Evolution Petroleum Sees Production Uplift from SCOOP/STACK Deals
2024-05-07 - Evolution Petroleum said the company added 300 gross undeveloped locations and more than a dozen DUCs.
Riley Exploration Permian Closes Delaware Basin Bolt-on
2024-05-08 - Riley Exploration Permian said it added 13,900 acres and up to 25 net locations in Eddy County, New Mexico.