SYDNEY: Pantera Lithium Ltd. (ASX: PFE) has entered a binding agreement to sell its Smackover lithium brine project in Arkansas to U.S.-based Energy Exploration Technologies Inc. (EnergyX) in a deal valued at A$40 million.
The transaction includes A$6 million in cash and A$34 million in EnergyX common stock, giving Pantera shareholders exposure to the recovering lithium market and EnergyX’s broader portfolio, including its flagship projects in Chile and Texas.
“This is a game-changing transaction for Pantera,” said Executive Chairman Barnaby Egerton-Warburton. “It confirms the significant potential of our Smackover Project and aligns us with a global lithium technology leader backed by General Motors, POSCO, and Eni.”
The Smackover asset spans 35,000 gross acres and will be transferred through the sale of Pantera’s wholly owned subsidiary, Daytona Lithium Pty Ltd. The deal is expected to close by Oct. 1, pending shareholder and regulatory approvals.
EnergyX will pay the cash component in three installments: A$2 million at closing, A$2 million nine months later, and the final A$2 million after 18 months. The stock component—2,344,828 shares priced at USD $9.50 each—will be held by Pantera until either an IPO or mutual agreement allows for distribution to shareholders.
Pantera said the capital injection will support its pursuit of new critical mineral opportunities without diluting existing shareholders. The company is currently evaluating several global projects and expects to update the market in the coming months.
EnergyX CEO Teague Egan called the acquisition a “transformative milestone” that will accelerate the company’s lithium production roadmap. “With 35,000 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,” Egan said.
Pantera will retain its EnergyX shares post-closing and may distribute them to shareholders following EnergyX’s IPO or with mutual consent.
A shareholder webinar hosted by Egerton-Warburton and Egan is scheduled for Monday, July 14, at 11:30 a.m. EST to provide further details.