BRISBANE: Lithium Energy Limited announced Tuesday it has agreed to sell its three graphite projects in central Queensland to M Battery Materials Pty Ltd for $20 million, a deal that would give Lithium Energy shareholders a stake in a newly formed battery materials company planning an ASX listing.
The transaction includes $5 million in cash and $15 million in shares of MBM, a private company owned and led by Matt Latimore, founder of M Resources, and Gerhard Redelinghuys, former managing director of Bowen Coking Coal Ltd.
Lithium Energy will seek shareholder approval to distribute the MBM shares to its own shareholders before MBM lists on the Australian Securities Exchange, provided the exchange does not impose escrow conditions on the shares. If escrow is required, the company would distribute 75% of the shares after the escrow period ends.
MBM plans to raise a minimum $15 million through an initial public offering and seek admission to the ASX as a specialist battery materials company focused on minerals critical to the global energy transition. Based on a $15 million raising at an assumed offer price of 50 cents per share, Lithium Energy shareholders would collectively hold 33.33% of the combined entity.
The graphite projects being sold — Burke, Mt Dromedary and Corella — hold a combined JORC-compliant mineral resource of 4.42 million metric tons of contained graphite, according to Lithium Energy. The Burke and Mt Dromedary deposits have average grades above 14% total graphitic carbon, significantly higher than most global peers, the company said.
“Combining these graphite deposits with the neighboring graphite and vanadium assets held by M Battery Materials will create an even more substantial and diversified battery minerals asset base,” said William Johnson, executive chairman of Lithium Energy.
Latimore said the acquisition creates “a high-grade graphite project on a global scale,” adding that M Resources’ integrated capabilities across development, supply chains, marketing and finance position the company to unlock significant value.
The sale is structured through Lithium Energy’s 100% sale of Axon Graphite Ltd, which holds the project tenements, to MBM. The share sale and purchase agreement is conditional on due diligence completion by June 8, 2026, ASX confirmation of MBM’s suitability for listing, and shareholder approvals.
MBM’s IPO prospectus is expected to be lodged with the Australian Securities and Investments Commission within the next three months. Lithium Energy will convene a shareholder meeting shortly after.
Lithium Energy intends to subscribe for shares in the MBM IPO under a separate agreement still being finalized. The company is also entitled to nominate one director to MBM’s board, with Johnson to serve as a non-executive director.
If the conditions are not satisfied or waived by Nov. 2, 2026, either party may terminate the agreement.
