TSX-listed graphite developer Lomiko Metals has advised that independent proxy advisory firms Institutional Shareholders Services (ISS) and Glass Lewis have both recommended that Lomiko shareholders vote in favour of a merger with fellow graphite developer Global Battery Materials.

Global Battery Metals announced the takeover offer in July, including an agreement to provide Lomiko with a senior secured bridge loan facility of up to C$800 000, or up to C$1.2-million in certain circumstances.

ISS, for one, lauded the certainty of value and immediate liquidity provided by the premium cash consideration of C$0.13 apiece, as well as the connected bridge loan financing, which it says provides sufficient funding to support Lomiko's operations in the near term.

In turn, Glass Lewis said the transaction provides shareholders with immediate cash value at a substantial premium to Lomiko's unaffected trading levels, while eliminating the significant financing, dilution and project execution risks associated with continuing to advance the La Loutre project, in Québec, independently.

The takeover implies an equity value of C$11-million for Lomiko.

Lomiko confirms a shareholder meeting will be held on September 23 in British Columbia.

Global Battery Materials is building a fully North American battery supply chain from natural graphite through to active anode materials.

Its vertically integrated platform is anchored by Canadian natural graphite assets and proprietary anode processing technology, already validated at its pilot plant in South Korea and now positioned to scale in North America. 

Global Battery Materials currently supplies anode materials from its Korean operations and supports industrial applications through the GBM Graphite Lab in Mont Laurier, Québec, which is already producing purified graphite concentrate samples for qualifying customers across both industrial and battery markets.

Following the acquisition process, Lomiko's La Loutre graphite project, Yellow Fox property and portfolio of other graphite assets will join Global Battery Materials' integrated anode materials platform as a long-term strategic feedstock asset.