TSX-V-listed graphite developer Lomiko Metals has entered into an arrangement agreement to be fully acquired by fellow Canadian graphite producer, and arm's length company to Lomiko, Global Battery Materials for C$0.13 apiece.

The cash consideration for the takeover represents a premium of 71% to the 20-day volume weighted average trading price of Lomiko shares, which implies an equity value of about C$11-million on a fully diluted basis.

Additionally, Global Battery Materials has agreed 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, with an 8% interest rate and a maturing date of 18 months following the initial advance.

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.

For Lomiko CEO and director Gordana Slepcev, the transaction provides immediate value to shareholders while placing the La Loutre project within an organisation that combines Canadian graphite resources with advanced anode processing technology.

"We look forward to supporting an orderly transition and the continued advancement of the project through its next stages," Slepcev states.

Global Battery Materials CEO and director Eric Miller adds that the acquisition marks another decisive step in the company's strategy to consolidate the fragmented battery supply chain and build a fully integrated graphite platform spanning mine to anode.

"Once the transaction is complete, we plan to engage with local rightholders and stakeholders as part of a structured review of La Loutre to determine its next steps. We look forward to diversifying the critical minerals that power our proprietary anode processing technology as we scale production across North America and unlock the full potential of our platform," Miller concludes.