PFE Closes $40M Project Sale to EnergyX

Our US lithium Investment Pantera Lithium (ASX: PFE) has just completed the sale of its US lithium asset to US based EnergyX.

The deal will see PFE receive $40m in value, with $2m in cash received today, another $2m to be received in 9 and then 18 months time plus shares in EnergyX currently worth $34M.

The shares received will see PFE share in any value created by EnergyX from the assets received in the transaction.

So will remain exposed to the potential turnaround in lithium pricing and sentiment.

We covered the deal prior here: PFE cuts $40M deal for its US assets: start of a bidding war?

PFE is continuing to hint that the funds are being aimed to be deployed on other US based assets.

From today’s announcement, PFE’s search for opportunities in the US is ongoing “Pantera continues to advance a pipeline of U.S. critical mineral opportunities across lithium, antimony, copper, silver, and rare earths in the United States.”:

(Source)

With PFE capped at $10M, we are looking forward to seeing what the company will do with the cash received and knowing it has further cash to come in over the next 18 months.

This $10M market cap includes ~$2.76M cash ($2M received today plus $760k as of June 30, $2m cash set to be received on 9 and again in 18 months time, plus shares valued at $34M in EnergyX.

Two weeks ago EnergyX engaged with Goldman Sachs to “financial advisor to EnergyX in connection with potential partnerships” (source) and has a signed letter of intent from the Export Import Bank for US$690M.

EnergyX is a private company developing lithium brine DLE projects in America, PFE shareholders will be able to realise the value of their EnergyX shareholding when the company IPOs or is on-sold.

Given the recent news about Goldman Sachs engagement, we are hoping that an IPO is coming soon for EnergyX.