Elevra Sells Ewoyaa Lithium Project to Huayou for Approximately $71M
Elevra Lithium announced that it has entered into an agreement to sell its interest in the Ewoyaa Lithium Project in Ghana to Huayou. Upon closing of the transaction, expected in Q1, Elevra will receive approximately $71M in cash. Under the terms of the agreement, Huayou has agreed to purchase all of Elevra's rights and interests, inclusive of Elevra's offtake rights, in the Ewoyaa Project. As announced to the ASX, Huayou has entered into a binding scheme implementation deed with Atlantic Lithium to acquire 100% of Atlantic's interest in the Ewoyaa Project via a scheme of arrangement for $210M in cash, payable at closing. Elevra currently owns 32,517,598 shares in Atlantic, or approximately 4.1% of the outstanding shares. Importantly, Huayou's acquisition of Elevra's interests in the Ewoyaa Project is not contingent on Huayou's acquisition of Atlantic Lithium. Selling its interests in the Ewoyaa Project allows Elevra to sharpen its focus on core North American assets while simplifying the corporate and operational structure by removing complexities associated with Ewoyaa's joint venture ownership framework and offtake arrangements. The sale also eliminates Elevra's ongoing funding commitment to develop the Ewoyaa Project. Completion of Elevra's transaction with Huayou remains subject to Ghanaian regulatory approvals and is expected to be completed by the end of Q1.
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- Economic Benefit Enhancement: The updated scoping study reveals that Elevra Lithium's North American Lithium expansion project's post-tax NPV has increased from C$479M (US$355M) to C$969M (US$718M), a 102% rise primarily driven by rising lithium prices and optimized production stages, significantly enhancing the project's financial appeal.
- Accelerated Production Capacity: The expansion project is expected to increase annual production from 315 kt to 338 kt, achieving this production speed two years ahead of the original plan, indicating Elevra's strategic flexibility and market responsiveness in meeting the growing lithium demand.
- Stable Capital Expenditure: The total capital expenditure for the project remains at C$366M (US$270M), and the phased investment strategy not only reduces initial capital requirements but also mitigates operational risks through staged implementation, ensuring effective capital utilization.
- Operational Cost Control: The projected unit production cost post-expansion is estimated at C$847/tonne (US$628/tonne), consistent with previous studies, indicating that Elevra can enhance production efficiency while maintaining cost control, thereby strengthening the project's long-term profitability.
- Economic Benefit Enhancement: The updated scoping study reveals that Elevra Lithium's North American Lithium expansion project has increased its post-tax NPV from C$479M (US$355M) to C$969M (US$718M), a 102% rise, primarily driven by rising lithium prices and optimized production staging, indicating strong economic potential for the project.
- Accelerated Production Capacity: The expansion project is expected to increase annual production from 315 kt to 338 kt, with production ramp-up occurring two years earlier than originally planned, set to commence in mid-CY27 for Stage 1, significantly enhancing the company's competitive position in the rapidly growing lithium market.
- Stable Capital Expenditure: The total capital expenditure for the project remains at C$366M (US$270M), with Stage 1 CAPEX at C$96M (US$71M), Stage 2 at C$81M (US$60M), and Stage 3 at C$188M (US$139M), demonstrating Elevra's ability to maintain cost control during the expansion process.
- Operational Cost Optimization: The unit operating cost post-expansion is projected at C$847/t (US$628/t), similar to previous studies, with expectations for further reductions in future production stages, enhancing the company's profitability and market appeal.
- Transaction Value: Elevra has entered into an agreement to sell its interest in the Ewoyaa Lithium Project to Zhejiang Huayou Cobalt for approximately $71 million in cash upon closing, significantly enhancing the company's financial flexibility.
- Strategic Focus: This sale allows Elevra to concentrate on its core North American assets while simplifying its corporate structure, thereby improving operational efficiency and management effectiveness.
- Equity Structure Optimization: By divesting its interests in the Ewoyaa Project, Elevra will eliminate ongoing funding commitments for development, further optimizing shareholder value as it currently holds about 4.1% of Atlantic Lithium.
- Regulatory Approval: The transaction is expected to close in Q1 FY27, pending Ghanaian regulatory approvals, with Elevra's CEO stating that this move will provide financial support for future development activities.
- Transaction Value: Elevra has entered into an agreement to sell its interest in the Ewoyaa Lithium Project to Zhejiang Huayou Cobalt for approximately $71 million in cash upon closing, expected to enhance the company's financial flexibility significantly.
- Strategic Focus: The sale allows Elevra to concentrate on its core North American assets while simplifying its corporate structure by removing complexities associated with the joint venture ownership of the Ewoyaa Project, thereby improving operational efficiency.
- Equity Impact: Elevra currently owns about 4.1% of Atlantic Lithium, and the sale of its Ewoyaa interests is not contingent on Huayou's acquisition of Atlantic, providing Elevra with greater flexibility in future investment decisions.
- Regulatory Approval: The transaction is expected to close in Q1 FY27, pending Ghanaian regulatory approvals, with Elevra's CEO stating that this move will strengthen the company's market position and drive long-term shareholder value creation.
- Safety Performance Improvement: North American Lithium achieved two consecutive months without recordable injuries, with the TRIFR remaining below the FY2026 target, reflecting the maturity of the company's safety culture and risk management embedded in daily operations.
- Record Revenue: Revenue for Q3 2026 reached $81 million, a 22% quarter-on-quarter increase, with year-to-date revenue of $167 million, up 68% year-on-year, indicating a strong rebound in lithium market demand.
- Mining Efficiency Enhancement: The ore mined for the quarter totaled 370,508 wet metric tonnes, a 5% decrease QoQ, yet the increase in operational flexibility supports alignment with production requirements.
- Accelerated Expansion Plans: Elevra announced an accelerated expansion approach for North American Lithium aimed at bringing spodumene concentrate production online earlier, optimizing capital deployment, with an updated expansion study expected in Q4 FY26.
- Safety Performance Improvement: North American Lithium achieved two consecutive months without recordable injuries, with the TRIFR remaining below FY2026 targets, reflecting the maturity of the company's safety culture and risk management embedded in daily operations.
- Record Revenue: Elevra reported revenue of $81 million for Q3 2026, a 22% quarter-on-quarter increase, with year-to-date revenue reaching $167 million, up 68% year-on-year, showcasing the company's strong performance and profitability in the lithium market.
- Increased Ore Mining Efficiency: The ore mined for the quarter totaled 370,508 wet metric tonnes, a 5% decrease quarter-on-quarter, yet operational flexibility improved, and lithium recovery rose to 66%, providing a solid foundation for future production.
- Capital Expenditure and Expansion Plans: Elevra's capital expenditure for the quarter was $4 million, supporting various sustaining projects at NAL, while announcing an accelerated expansion plan aimed at bringing additional spodumene concentrate production online earlier and optimizing capital deployment.









