- NOVONIX Restricted (“NOVONIX”) and Lithium Power Restricted (“LEL”) to contribute their pure graphite exploration pursuits into a brand new firm, Axon Graphite Restricted (“Axon”)
- Shares of Axon to be supplied by an preliminary public providing (“IPO”) and listed on the Australian Securities Alternate (“ASX”)
- NOVONIX and LEL every will retain as much as 28.57% possession of Axon following the deliberate IPO
- Creates world class, large-scale pure flake graphite undertaking
- Realises worth for the shareholders of each NOVONIX and LEL
- Eligible NOVONIX and LEL shareholders to be given precedence within the IPO
BRISBANE, Australia, April 03, 2024 (GLOBE NEWSWIRE) — NOVONIX Restricted (NASDAQ: NVX, ASX: NVX) (“NOVONIX” or “the Firm”), a number one battery supplies and expertise firm, right now introduced that it has signed a definitive settlement beneath which its wholly owned subsidiary, MD South Tenements Pty Ltd, which holds the Mount Dromedary pure graphite exploration pursuits, will probably be divested to Axon Graphite Restricted (“Axon”), a subsidiary of Lithium Power Restricted (ASX: LEL). LEL will contribute its curiosity in its Burke and Corella graphite projects to Axon pursuant to the settlement. As consideration for the transaction, NOVONIX will obtain shares in Axon, which the events intend to record on the Australian Securities Alternate (“ASX”). The transaction is topic to the completion of the events’ due diligence enquiries, completion of the proposed preliminary public providing (“IPO”) of Axon, and receipt of approval for the admission of Axon to the ASX.
NOVONIX’s Mt. Dromedary undertaking is a high-grade pure flake graphite deposit (refer Annexure A) and is adjoining to LEL’s Burke pursuits situated 125km north of Cloncurry in northwest Queensland in a well-established mining area with entry to an export hub. LEL’s Corella pursuits are situated 40km west of Cloncurry.
Axon’s principal actions will embody:
- Advancing the event of the Burke/Mt. Dromedary graphite initiatives;
- Advancing the exploration, analysis and growth of the Corella graphite undertaking;
- Progressing the event of a vertically built-in Spherical Purified Graphite Battery Anode Materials manufacturing facility in Queensland; and
- Investigating and doubtlessly pursuing different potential initiatives within the battery minerals sector each in Australia and overseas.
Axon proposes to undertake its IPO to boost a minimal of $15 million and as much as $25 million at a problem value of $0.20 per share. The proposed IPO will embody a precedence provide to each eligible NOVONIX and eligible LEL shareholders, in addition to a public provide to different new traders (see desk 1 beneath). The Axon prospectus for the proposed IPO is predicted to be issued in roughly 6 to eight weeks.
Upon completion of the proposed IPO, NOVONIX and LEL will every retain as much as 28.57% of the shares in Axon with the remaining shares to be held by traders within the IPO. The shares held by every of NVX and LEL will possible be held in escrow for a interval of 24 months.
Desk 1 – Professional-Forma Axon Graphite Capital Construction
Minimal Subscription | Supply | Most Subscription | |||||||
No. Shares | Fund Raised | No. Shares | Fund Raised | No. Shares | Fund Raised | ||||
Proposed IPO at $0.20 Subject Value | 75,000,000 | $15,000,000 | 100,000,000 | $20,000,000 | 125,000,000 | $25,000,000 | |||
Submit-IPO Shareholders | No. Shares | % of Submit-IPO Issued Capital |
No. Shares | % of Submit-IPO Issued Capital |
No. Shares | % of Submit-IPO Issued Capital |
|||
Lithium Power Restricted | 50,000,000 | 28.57 | % | 50,000,000 | 25 | % | 50,000,000 | 22.22 | % |
NOVONIX Restricted | 50,000,000 | 28.57 | % | 50,000,000 | 25 | % | 50,000,000 | 22.22 | % |
New Shareholders beneath IPO | 75,000,000 | 42.86 | % | 100,000,000 | 50 | % | 125,000,000 | 55.56 | % |
Complete | 175,000,000 | 100 | % | 200,000,000 | 100 | % | 225,000,000 | 100 | % |
Indicative Market Capitalisation (primarily based on $0.20 IPO Subject Value) | $35,000,000 | $40,000,000 |
$45,000,000 | ||||||
Dr. Chris Burns, CEO of NOVONIX mentioned: “The expansion alternative within the electrical automobile and vitality storage programs battery markets for anode supplies and high-grade graphite merchandise is important over the following decade. We imagine the mixture of the Mt. Dromedary and Burke property will improve the size and economics of those assets and supply the main focus for the event of a considerable pure graphite mine and enterprise. We imagine the newly fashioned firm of Axon to deal with the event of those property supplies the chance to draw new capital to allow the event of the useful resource and advance the manufacturing of extremely refined grade pure graphite for EVs and ESS. It is going to additionally spotlight the worth of those property for NOVONIX shareholders.”
William Johnson, Govt Chairman of LEL, commented, “This transaction involving the Mt Dromedary and the Burke Graphite Tasks will permit the consolidation of two adjoining prime quality pure graphite deposits, making a world-class stock of high-grade pure graphite to help plans to develop an Australian-based, vertically built-in battery anode materials (BAM) enterprise. We count on important operational synergies and economies of scale will probably be gained from the consolidation of those adjoining graphite deposits. We’re delighted additionally to have NOVONIX as a associate in Axon Graphite. NOVONIX has established an enviable place throughout the international battery {industry} and their expertise and {industry} contacts will probably be of nice worth for Axon Graphite transferring ahead.”
This announcement has been licensed for launch by NOVONIX Chairman, Admiral Robert J. Natter, USN Ret.
About NOVONIX
NOVONIX is a number one battery expertise firm revolutionizing the worldwide lithium-ion battery {industry} with modern, sustainable applied sciences, high-performance supplies, and extra environment friendly manufacturing strategies. The Firm manufactures industry-leading battery cell testing tools, is rising its high-performance artificial graphite anode materials manufacturing operations, and has developed an all-dry, zero-waste cathode synthesis course of. By way of superior R&D capabilities, proprietary expertise, and strategic partnerships, NOVONIX has gained a outstanding place within the electrical automobile and vitality storage programs battery {industry} and is powering a cleaner vitality future.
To be taught extra, go to us at www.novonixgroup.com or on LinkedIn and X.
For NOVONIX Restricted
Scott Espenshade, ir@novonixgroup.com (traders)
Valerie Malone, media@novonixgroup.com (media)
Cautionary Be aware Relating to Ahead-Trying Statements
This communication accommodates forward-looking statements in regards to the Firm and the {industry} wherein we function. Ahead-looking statements can usually be recognized by use of phrases corresponding to “anticipate,” “imagine,” “ponder,” “proceed,” “might,” “estimate,” “count on,” “intend,” “might,” “plan,” “potential,” “predict,” “undertaking,” “ought to,” “goal,” “will,” or “would,” or different related expressions. Examples of forward-looking statements on this communication embody statements we make relating to the proposed transaction with Lithium Power Restricted and the proposed Axon Graphite Restricted IPO and ASX itemizing, Axon’s growth of the Mt. Dromedary, Burke and Corella pure graphite assets for the manufacturing of anode supplies for EV batteries, and Axon’s potential to scale-up manufacturing of its battery anode supplies.
We now have primarily based these forward-looking statements on our present expectations and projections about future occasions and tendencies that we imagine might have an effect on our monetary situation, outcomes of operations, enterprise technique and monetary wants. Such forward-looking statements contain and are topic to identified and unknown dangers, uncertainties and different elements which can trigger our precise outcomes, efficiency or achievements to be materially completely different from any future outcomes, efficiency or achievements expressed or implied by the forward-looking statements. Elements that might have an effect on our enterprise and outcomes are included in our filings with the U.S. Securities and Alternate Fee (“SEC”), together with the Firm’s Type 20-F. Copies of those filings could also be obtained by visiting our Investor Relations web site at www.novonixgroup.com or the SEC’s web site at www.sec.gov.
Ahead-looking statements are usually not ensures of future efficiency or outcomes, and precise efficiency and outcomes might differ materially from these made in or prompt by the forward-looking statements contained on this communication. Accordingly, you shouldn’t place undue reliance on forward-looking statements. Any forward-looking assertion on this communication relies solely on data at present accessible to us and speaks solely as of the date on which it’s made. We undertake no obligation to publicly replace any forward-looking assertion, whether or not written or oral, which may be constructed from time, whether or not because of new data, future developments or in any other case, besides as required by regulation.
Particularly, we warning that the proposed Axon IPO and ASX itemizing could also be topic to ultimate board and regulatory approvals and relies on market situations. We warning that the admission of Axon to the official record of the ASX is conditional on and topic to the ASX’s satisfaction that Axon has a construction and operations appropriate for a listed entity on the ASX’s absolute discretion.
In accordance with part 734(5)(b) of the Firms Act 2001 (Cth) (Firms Act), it’s famous that:
- Axon would be the offeror of absolutely paid odd shares beneath the IPO;
- a prospectus will probably be issued by Axon in accordance with Half 6.2 of the Firms Act when the IPO shares are supplied;
- an individual ought to take into account the prospectus in deciding whether or not to use for IPO shares; and
- anybody who desires to use for the IPO might want to full an software type that will probably be in or will accompany the prospectus.
Annexure A
About Mt. Dromedary Graphite Undertaking
JORC Mineral Sources
The Mt Dromedary Graphite Undertaking has a present Complete Mineral Useful resource of 14.3Mt at 13.3% Complete Graphitic Carbon (TGC) for 1.908Mt of contained graphite (at a 4% TGC cut-off grade) comprising:
- Complete Measured Mineral Useful resource of 1.0Mt at 12.9% TGC for 131kt of contained graphite;
- Complete Indicated Mineral Useful resource of 8.5Mt at 13.9% TGC for 1,185kt of contained graphite; and
- Complete Inferred Mineral Useful resource of 4.8Mt at 12.4% TGC for 596kt of contained graphite.
Measured Mineral Useful resource | |||||
Area | Kind | Tonnage Mt |
TGC % |
Complete Carbon (TC) % |
Contained Graphite kt |
Excessive Grade (>10% TGC) |
Weathered Major |
0.2 0.5 |
16.1 16.9 |
17.7 18.0 |
33 84 |
Sub-Complete | 0.7 | 16.6 | 17.9 | 117 | |
Medium Grade (4 to 10% TGC) |
Weathered | 0.1 | 4.5 | 5.8 | 4 |
Major | 0.2 | 4.5 | 5.0 | 11 | |
Sub-Complete | 0.3 | 4.5 | 5.2 | 14 | |
Complete | 1.0 | 12.9 | 14.0 | 131 |
Indicated Mineral Useful resource | |||||
Area | Kind | Tonnage Mt |
TGC % |
TC % |
Contained Graphite kt |
Excessive Grade (>10% TGC) |
Weathered Major |
0.9 4.5 |
18.2 18.7 |
19.4 19.6 |
170 837 |
Sub-Complete | 5.4 | 18.6 | 19.6 | 1,007 | |
Medium Grade (4 to 10% TGC) |
Weathered | 0.6 | 5.6 | 6.6 | 35 |
Major | 2.5 | 5.7 | 6.4 | 143 | |
Sub-Complete | 3.1 | 5.7 | 6.4 | 178 | |
Complete | 8.5 | 13.9 | 14.7 | 1,185 |
Inferred Mineral Useful resource | |||||
Area | Kind | Tonnage Mt |
TGC % |
TC % |
Contained Graphite kt |
Excessive Grade (>10% TGC) |
Weathered Major |
0.2 2.2 |
15.3 18.8 |
16.8 19.7 |
25 414 |
Sub-Complete | 2.4 | 18.5 | 19.5 | 439 | |
Medium Grade (4 to 10% TGC) |
Weathered | 0.2 | 6.5 | 7.3 | 12 |
Major | 2.2 | 6.4 | 6.9 | 142 | |
Sub-Complete | 2.4 | 6.4 | 7.0 | 154 | |
Complete | 4.8 | 12.4 | 13.2 | 593 |
Complete Mineral Sources | |||||
Area | Kind | Tonnage Mt |
TGC % |
TC % |
Contained Graphite kt |
Excessive Grade (>10% TGC) |
Weathered Major |
1.3 7.2 |
17.5 18.6 |
18.8 19.5 |
227 1,335 |
Sub-Complete | 8.5 | 18.4 | 19.4 | 1,562 | |
Medium Grade (4 to 10% TGC) |
Weathered | 0.9 | 5.7 | 6.7 | 51 |
Major | 5.0 | 6.0 | 6.6 | 295 | |
Sub-Complete | 5.8 | 5.9 | 6.6 | 346 | |
Complete | 14.3 | 13.3 | 14.2 | 1,908 | |
NOTES:
(1) | Totals might differ resulting from rounding; Mineral Sources reported on a dry in-situ foundation. | |
(2) | All reported Mineral Sources signify estimates as at 21 October 2016. Mineral Useful resource estimates are usually not exact calculations, being depending on the interpretation of restricted data on the situation, form and continuity of the prevalence and on the accessible sampling outcomes. Mineral Sources totals have been rounded to mirror the relative uncertainty of the estimate. Rounding might trigger some computational discrepancies. | |
(3) | The Competent Individual is of the opinion that due to the development of detailed metallurgical testwork (together with manufacturing of a giant pattern of product for buyer testing) and discussions with potential prospects (that are confidential), there’s a cheap expectation a saleable product and buyer will probably be secured. | |
(4) | The reporting 4% TGC cut-off grade has been chosen primarily based on the outcomes of the Mount Dromedary Graphite Undertaking Scoping Examine carried out by RPMGlobal Holdings Restricted (then often known as RungePincockMinarco Restricted) throughout August 2016. The Scoping Examine indicated {that a} break- even cut-off grade for the Mount Dromedary Mineral Useful resource is 4% TGC, assuming a product (very effective) value of $US800/t, a 95% TGC common focus grade and an open pit mining technique. | |
(5) | For additional particulars, check with NVX’s ASX Announcement dated 20 October 2016 entitled “Upgraded Independent JORC Mineral Resource Estimate”. |
Tenement Particulars
Tenement Holder |
Tenement Title |
Tenement No. |
Grant Date |
Expiry Date |
Space (sub-blocks) |
Space (km²) |
MD South Tenements Pty Ltd | Pigeon South | EPM 17246 | 26/10/2010 | 25/10/2024 | 1 | ~3.29 |
Pigeon South | EPM 17323 | 20/10/2010 | 19/10/2024 | 1 | ~3.29 | |
Exco Sources Pty Ltd | Boomarra Consolidation |
EPM 26025 (Sub-Blocks D, J, O and S inside Normanton 3123 Block) |
14/12/2015 | 13/12/2025 | 5 | ~16.45 |
NOTES:
(1) | EPM means Exploration Allow for Minerals; MDL means Mineral Improvement Licence | |
(2) | Curiosity in EPM 26025 is held pursuant to: | |
(a) | Mount Dromedary Improvement Rights Settlement between Novonix Restricted (previously Graphitecorp Restricted) and Exco Sources Pty Ltd ACN 080 339 671 (previously Exco Sources Restricted) dated 29 August 2016 (DRA)– refer additionally, NVX ASX Announcement dated 29 August 2016: Washington H. Soul Pattinson and Firm to Merge JV Curiosity into GraphiteCorp; the DRA was assigned by Novonix to MDSTPL beneath the MRD. | |
(b) | Mineral Rights Deed (Mt Dromedary MDL) between Novonix Restricted, MD South Tenements Pty Ltd (MDSTPL) and Exco Sources dated Pty Ltd 23 February 2024 (MRD). | |
(3) | Every of EPM 17246 and EPM 17323 are capable of be renewed for 4 years (to 2028) previous to their 2024 expiry dates; and once more for an extra 2 years (to 2030) previous to their expiry in 2028; the tenements will expire in October 2030. | |
(4) | EPM 26025 is ready to be renewed for five years (to 2030) previous to its 2025 expiry date (with a 50% relinquishment of its present 105 sub-blocks); the tenement will expire on 13 December 2033. | |
(5) | The renewals and expiry of EPM 17246, EPM 17323 and EPM 26025 are pursuant to the transitional preparations beneath the Pure Sources and Different Laws Amendments Act 2019 (Qld) (efficient 25 Might 2020) (NROLA). |
Competent Individual’s Assertion
The knowledge on this doc that pertains to Mineral Sources in relation to the Mt Dromedary Graphite Undertaking is extracted from the next ASX market announcement made by Novonix Restricted (ASX:NVX) (previously Graphitecorp Restricted (former ASX:GRA) dated 20 October 2016 entitled “Upgraded Independent JORC Mineral Resource Estimate”. The Firm confirms that it’s not conscious of any new data or information that materially impacts the knowledge included within the unique market announcement and that every one materials assumptions and technical parameters underpinning the estimates within the unique market announcement proceed to use and haven’t materially modified. The Firm confirms that the shape and context wherein the Competent Individual’s findings are introduced haven’t been materially modified from the unique market announcement (referred to above).
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