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

-8.24% close to close Open Argus

Details

News Market Reaction – SYAXF

On May 13, the first trading day after this news, SYAXF closed 8.24% below the previous close.

Data tracked by StockTitan Argus for the May 13 session.

Key Figures

Share consideration: US$5 million Options 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 for offtake termination

Options consideration

US$0.5 million

Value of options issued to Waratah under the termination agreement

Issue price

A$12.20 per share

Issue price for Elevra shares issued to Waratah

Option exercise premium

50% premium

Options exercisable at 50% above the share issue price

Moblan ownership

60% Elevra / 40% Investissement Québec

Ownership split of the Moblan Lithium Project

Offtake discount

5% discount

Original Moblan offtake priced at 5% below prevailing market prices

Moblan offtake share

10% of Sayona ownership participation

Original life-of-mine Moblan offtake portion granted to Waratah

Options exercisability

120 days to 3 years

Options exercisable from 120 days after closing until third anniversary

Historical Context

5 past events · Latest: Apr 22

5 events

1. Apr 22

   Quarterly operations update

   24h Move

   +3.4%

   Reported record quarterly and YTD revenue with reaffirmed FY26 guidance.

2. Apr 15

   Quarterly advisory

   24h Move

   +9.7%

   Announced timing and webcast details for March 2026 quarterly report.

3. Feb 09

   Offtake MoU

   24h Move

   +2.5%

   Signed MoU with Mangrove Lithium for significant NAL spodumene offtake.

4. Jan 27

   Quarterly operations update

   24h Move

   -8.4%

   Reported record revenue but weaker recovery and lower concentrate production.

5. Jan 21

   Report timing & FX

   24h Move

   +11.9%

   Outlined December 2025 report timing and shift of presentation currency to USD.

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, life of mine, options, +2 more

6 terms

spodumene concentrate technical

"purchased and terminated the spodumene concentrate offtake agreement"

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

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

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.

life of mine technical

"annual spodumene concentrate production on a life of mine basis"

The life of mine is the estimated time span during which a mining operation will produce economically recoverable minerals from a deposit. Think of it as the mine’s usable lifespan, like how long a factory or battery can keep making product before it runs out or becomes uneconomical; it matters to investors because it drives projected revenue, reserve valuation, capital spending schedules, and long‑term profitability.

options financial

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

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

issue price financial

"ordinary shares (at an issue price of A$12.20 per share)"

The issue price is the amount of money investors pay to buy a new security, such as a stock or bond, when it is first offered to the public. It matters to investors because it determines their initial cost and potential future gains or losses, similar to paying a set price for a new product before it hits stores. The issue price helps establish the value of the security at the start of its trading life.

placement capacity financial

"The shares will be issued using existing placement capacity"

Placement capacity is the amount of new shares or other securities a company and its brokers can sell privately to chosen investors at one time. It matters to investors because it determines how much capital the company can raise quickly without a public offering, and larger placements can dilute existing shareholders’ ownership or change the stock’s supply; think of it as the size of a private crowdfunding bucket that can alter who owns the company and how much each share is worth.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

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.