Elevra Lithium Announces Purchase of Moblan Offtake Rights

Elevra Lithium (ASX:ELV, NASDAQ:ELVR) has purchased and terminated Waratah’s Moblan spodumene offtake rights.

Rhea-AI Summary

Elevra Lithium (ASX:ELV, NASDAQ:ELVR) has purchased and terminated Waratah’s Moblan spodumene offtake rights. Moblan is 60% owned by Elevra and 40% by Investissement Québec.

Elevra will issue Waratah US$5m in shares and US$0.5m in options, regaining 100% of its attributable Moblan offtake and removing a life-of-mine 5% price discount.

Positive

• Company regains 100% control of attributable Moblan offtake
• Eliminates life-of-mine 5% discount to prevailing market prices
• Equity-based consideration preserves cash for project development
• Increased flexibility for future supply agreements and financing structures

Negative

• US$5 million share issuance creates equity dilution for existing holders
• Additional US$0.5 million in options may add future dilution over three years
• Company incurs termination cost to remove discounted offtake agreement

Argus May 13 session

-8.32% close to close Open Argus

Details

News Market Reaction – ELVR

In the May 13 session, ELVR declined 8.32%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.3% in the session following this news. A negative reaction despite the strategic ...

Analysis

The stock moved -8.3% in the session following this news. A negative reaction despite the strategic logic would fit the recent divergence seen after the Ewoyaa sale, where shares fell 0.18% following a cash-generative transaction. Today’s deal eliminates a life-of-mine offtake at a 5% discount but is funded via equity and options, which can raise dilution concerns. Sustainability of prior gains above the 200-day MA and integration with broader portfolio changes remain important watchpoints.

Key Figures

Share consideration: US$5 million Option consideration: US$0.5 million Issue price: A$12.20 per share +5 more

Share consideration

US$5 million

Value of Elevra ordinary shares issued to Waratah

Option consideration

US$0.5 million

Value of options issued to Waratah

Issue price

A$12.20 per share

Price for Elevra ordinary shares issued in the transaction

Option strike premium

50% premium

Options exercisable at 50% above the share issue price

Offtake discount removed

5% discount

Prior offtake priced at 5% below prevailing market prices

Offtake volume share

10% of output

Waratah right to 10% of Sayona’s Moblan ownership participation

Moblan ownership

60% / 40%

Moblan owned 60% by Elevra, 40% by Investissement Québec

Offtake entitlement

100% pro-rata

Elevra now controls 100% of its attributable Moblan offtake

Historical Context

5 past events · Latest: May 10

5 events

1. May 10

   Asset sale & offtake

   24h Move

   -0.2%

   Sale of Ewoyaa interest and offtake rights for about US$71M cash.

2. May 06

   Peer CFO change

   24h Move

   -2.7%

   Almonty Industries appointed a new CFO to support next growth phase.

3. Apr 22

   Quarterly results

   24h Move

   +3.0%

   Record quarterly revenue, higher production, strong utilisation and reaffirmed guidance.

4. Apr 15

   Earnings advisory

   24h Move

   +5.4%

   Notification of upcoming quarterly report release and investor webcast details.

5. Feb 09

   Offtake MoU

   24h Move

   +0.9%

   Non-binding MoU to supply up to 144,000 tpa spodumene to Mangrove Lithium.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

spodumene concentrate, offtake agreement, options

3 terms

spodumene concentrate technical

"the spodumene concentrate offtake agreement (“Offtake Agreement”) previously granted"

A processed rock product that concentrates spodumene, a mineral rich in lithium, which is then refined into lithium chemicals used to make rechargeable batteries. Think of it as the crude oil equivalent for lithium batteries: an early-stage raw material whose availability and price influence the cost and supply of battery-grade lithium. Investors watch spodumene concentrate as an indicator of future battery material supply, production costs, and the health of electric-vehicle and energy-storage supply chains.

offtake agreement financial

"spodumene concentrate offtake agreement (“Offtake Agreement”) previously granted"

A contract in which a buyer commits to purchase a set portion or percentage of a producer’s future output—such as minerals, energy, agricultural goods, or manufactured products—often over a multi‑year period. It matters to investors because it creates predictable sales and cash flow, reduces the risk of unsold inventory, and can make projects easier to finance; think of it like pre‑selling future harvests or securing long‑term customers before production begins.

options financial

"US$0.5 million in options (at the same issue price) which are exercisable"

Options are contracts that give investors the right to buy or sell an asset at a specific price within a certain time frame. They function like a reservation or a ticket that allows for potential profit or protection against price changes, making them useful tools for managing investment risks or speculating on market movements.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BRISBANE, Australia, May 12, 2026 (GLOBE NEWSWIRE) -- North American lithium producer Elevra Lithium Limited (“Elevra” or "Company") (ASX:ELV; NASDAQ:ELVR) is pleased to announce that it has purchased and terminated the spodumene concentrate offtake agreement (“Offtake Agreement”) previously granted to an investment vehicle managed by Waratah Capital Advisors Ltd (“Waratah”) in respect of the Moblan Lithium Project (“Moblan”). Moblan is owned 60% by Elevra and 40% by Investissement Québec.

Following completion of the transaction, Elevra now controls 100% of its pro-rata offtake entitlement from Moblan, enhancing future value realisation from one of North America’s preeminent lithium assets.

Transaction Overview

The terminated Offtake Agreement originated under an October 2021 agreement between Sayona Mining and Waratah which granted Waratah the right to purchase 10% of Sayona’s ownership participation in Moblan’s annual spodumene concentrate production on a life of mine basis priced at a 5% discount to prevailing market prices.

Elevra and Waratah have executed an agreement to terminate the Offtake Agreement and related delivery obligations. In consideration of the termination of the Offtake Agreement, Elevra has agreed to issue Waratah:

• US$5 million in Elevra Lithium ordinary shares (at an issue price of A$12.20 per share); and
• US$0.5 million in options (at the same issue price) which are exercisable at a 50% premium to the issue price of Elevra’s ordinary shares issued under this agreement.

The shares will be issued using existing placement capacity and will rank equally with existing Elevra ordinary shares, while the options are exercisable 120 days after closing (closing being 12 May 2026) and up to the third anniversary of the date of closing.

Strategic Rationale

The repurchase strengthens Elevra’s long-term commercial position at Moblan by eliminating a life of mine sales commitment priced at a discount to prevailing market prices. Elevra now controls 100% of the Company’s attributable Moblan offtake, creating increased flexibility to structure supply agreements and financing opportunities.

Elevra’s Chief Executive Officer and Managing Director, Lucas Dow, said: “The original agreement represented a life of mine commitment at a discounted market price. As we explore developing Moblan as a larger project, the ability to purchase the Moblan offtake presented an opportunity to enhance the long-term economics and strategic flexibility of the project. This was achieved through an equity-based transaction which preserves cash as we advance development planning."

Announcement authorised for release by Elevra’s Board of Directors.

About Elevra Lithium

Elevra Lithium Limited is a North American lithium producer (ASX:ELV; NASDAQ:ELVR) with projects in Québec, Canada, United States and Western Australia.

Elevra’s assets comprise North American Lithium (100%), a 60% stake in the Moblan Lithium Project in Central Québec and the Carolina Lithium project (100%) in the United States¹.

In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.

For more information, please visit us at www.elevra.com

__________________________________________

1. See ASX release dated 11 May 2026, “Elevra enters agreement to sell Ewoyaa Project interest”.

For more information, please contact:
Andrew Barber
Investor Relations
PH: +617 3369 7058

FAQ

What did Elevra Lithium (ELVR) announce about the Moblan offtake rights on May 12, 2026?

Elevra Lithium announced it purchased and terminated Waratah’s Moblan spodumene concentrate offtake rights. According to Elevra, this gives the company full control of its attributable Moblan offtake and removes a life-of-mine sales commitment priced at a 5% market discount.

How much is Elevra Lithium paying to terminate the Moblan offtake agreement?

Elevra Lithium is issuing US$5 million in shares and US$0.5 million in options. According to Elevra, the shares are priced at A$12.20 each, with options exercisable at a 50% premium to that issue price over a three-year period.

What percentage of the Moblan Lithium Project does Elevra Lithium (ELVR) own?

Elevra Lithium owns 60% of the Moblan Lithium Project. According to Elevra, Investissement Québec holds the remaining 40%, and following this transaction Elevra now controls 100% of its pro-rata spodumene concentrate offtake entitlement from Moblan.

How does terminating the Moblan offtake deal benefit Elevra Lithium shareholders?

Terminating the Moblan offtake removes a life-of-mine 5% price discount on sales. According to Elevra, full control of attributable offtake increases flexibility to structure higher-value supply contracts and financing, while the equity-based payment preserves cash for project development.

Will Elevra Lithium’s Moblan offtake termination increase share dilution for ELVR investors?

The transaction introduces dilution through new shares and options issued to Waratah. According to Elevra, it will issue US$5 million in ordinary shares plus US$0.5 million in options exercisable from 120 days after closing to the third anniversary.

When can Waratah exercise its Elevra Lithium options issued for the Moblan transaction?

Waratah’s options become exercisable 120 days after the May 12, 2026 closing. According to Elevra, the options are priced at a 50% premium to the A$12.20 share issue price and remain exercisable until the third anniversary of closing.