
General Motors-backed Energy Exploration Technologies Inc. (EnergyX) has signed a binding conditional agreement to acquire Daytona Lithium Pty. Ltd. from Pantera Lithium Ltd. for AUD 40 million.
Daytona Lithium owns 35,000 gross acres on Arkansas’ side of the Smackover formation, which EnergyX sees as “North America’s most promising lithium region”.
San Juan, Puerto Rico-based EnergyX already holds 12,500 acres on the Texas side. Last year the company announced Project Lonestar, to rise in the “Ark-La-Tex” region. The project aims to produce 50,000 metric tons per annum (MMtpa) of lithium hydroxide by 2030, with a first phase of 12,500 MMtpa to be put into operation by 2028.
“The company has already had samples of lithium from its pilot plant in Austin, TX qualified by cathode customers”, EnergyX said.
“Now with a solid resource footprint for Project Lonestar™, EnergyX will vertically integrate its proprietary LiTAS® Direct Lithium Extraction technology platform to produce low-cost lithium for its growing customer base. EnergyX can unlock unprecedented efficiencies in lithium production, leveraging its patented technology portfolio to achieve faster extraction, higher recovery rates, and reduced environmental impact”.
The parties expect to complete the stock and cash transaction in the third quarter, subject to approval by shareholders of West Perth, Australia-based Pantera. EnergyX will issue over 2.34 million shares priced US$9.5 per unit or AUD 34 million in total and pay AUD 6 million in cash in three installments.
“This deal allows Pantera to retain strong exposure to the Smackover Play – now the most sought-after lithium province in the United States – while also gaining exposure to EnergyX’s large-scale Black Giant Project in Chile, which is well advanced and targeting production in 2027”, said Pantera executive chair Barnaby Egerton-Warburton.
The project in Chile, where Energyx owns about 100,000 acres acquired 2023, targets to produce 7,500 MMtpa LCE in phase 1 and add 52,500 MMtpa LCE in the second phase.
“Overall, by aligning Pantera’s Smackover Project with this powerhouse, we’ve created a synergistic platform that connects one of North America’s most prospective lithium brine basins with EnergyX’s advanced extraction tech and downstream ambitions”, Egerton-Warburton added.
“The transaction delivers immediate capital, operational momentum, and a long-term strategic relationship that could see Pantera own a cornerstone of the North American lithium supply chain”.
EnergyX chief executive Teague Egan said, “EnergyX is now poised to deliver a scalable, sustainable lithium supply to major EV makers, battery cell manufacturers, and cathode makers from our production facilities in the Americas”.
“With 50,000 acres positioned adjacent to Exxon, Chevron, and Standard Lithium in the Smackover, the race is on to see who will be the first to produce commercial battery-grade lithium”.
Last month Chevron said it had acquired two Smackover leaseholds spanning about 125,00 net acres, saying the purchases mark the first step in its establishment of a commercial-scale lithium business in the U.S.
The acreage positions, from East Texas Natural Resources LLC and The Energy & Minerals Group’s TerraVolta Resources, straddle Northeast Texas and Southwest Arkansas, Chevron said.
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