The Funding Package

The A$421M financing comprises two instruments. The first is a fully underwritten institutional placement of 22.5 million new shares at A$12.20 each, representing an 11.2% discount to the last close of A$13.74 on 11 May 2026 and an 8.7% discount to the five-day volume-weighted average price of A$13.36. The placement represents 13.3% of existing issued shares on a pre-placement basis.

The second instrument is a C$145M convertible note facility from Canada Growth Fund. The facility is structured in two tranches: an upfront C$65M tranche and a conditional C$80M tranche anticipated to be drawn in 2027. Each tranche carries a five-year maturity and pays a coupon of CORRA plus 225 basis points per annum, with semi-annual cash payments. The conversion price for the upfront tranche has been set at A$17.17 per share, a meaningful premium to the placement price. The convertible note issue is subject to shareholder approval at an extraordinary general meeting targeted for July 2026.

An additional non-underwritten Share Purchase Plan of up to A$20M will give eligible retail shareholders the opportunity to participate at the same price or lower than the institutional placement. The SPP booklet is expected to be dispatched on 19 May 2026, with a closing date of 29 May 2026.

NAL Expansion: The Investment Case

The capital raised will fund a three-stage brownfield expansion at NAL, Elevra’s operating spodumene mine in Québec. An updated scoping study released on 12 May 2026 defines an expansion pathway from an approximate production base of 194ktpa to 338ktpa on an average life-of-mine basis, an increase of roughly 74%.

Stage 1 involves mill optimisation and is expected to add 15 to 20% capacity at a capital cost of US$71M (A$103M), with commencement targeted for mid-calendar year 2027. Stage 2, budgeted at US$60M (A$87M), targets a throughput increase to 338ktpa nominal and is scheduled for calendar year 2028. Stage 3 covers crushing and ore-sorting infrastructure at a cost of US$139M (A$202M) and is planned for calendar year 2029. Combined expansion capital expenditure is approximately US$270M.

Unit C1 costs are expected to fall from US$793 per dry metric tonne at the base case to US$628/dmt post-expansion, a reduction of approximately 21%. Post-tax net present value at an 8% discount rate rises from US$1,587M in the base case to US$2,305M fully expanded, an uplift of US$718M or 45%.

A key feature of the investment thesis is that NAL is an operating mine with an established environmental track record. Stage 1 of the expansion is designed around the existing 4,500 tpd permitted rate, allowing work to begin within the approved operating footprint. Later stages will require additional permitting, including a Phase 5 mining permit that is also a condition of the CGF conditional tranche, but the staged approach avoids the multi-year greenfield permitting timelines that have slowed many rival lithium development projects.

In the March 2026 quarter, NAL produced 47,332 dmt and sold 55,526 dmt at an average realised price of US$1,453/dmt on a free-on-board basis, generating quarterly revenue of US$81M, a record and a 22% increase on the prior quarter. Net cash stood at US$58.7M as of 31 March 2026. Full-year FY26 guidance remains 180,000 to 190,000 dmt of production at a unit cost of US$860 to US$880/dmt FOB.

“The March 2026 quarter reflected improved operational performance driven by focused execution… We believe Elevra Lithium is increasingly well positioned with existing production, scalable growth, and a strategy centred on disciplined execution and capital efficiency.”

— Lucas Dow, Managing Director and CEO, Elevra Lithium

Canada Growth Fund Partnership

The Canada Growth Fund is a C$15 billion government-backed investment vehicle established to attract private capital into Canada’s clean economy. It operates as a catalytic investor, deploying patient capital alongside private co-investors to de-risk projects in strategic sectors including critical minerals. To date, CGF has committed C$5 billion across 20 portfolio companies.

CGF’s decision to provide C$145M in convertible notes to Elevra carries strategic weight beyond the financing itself. Elevra presents the participation as strong Canadian stakeholder support for its NAL and Moblan growth plans. CGF’s mandate is to catalyse private capital into Canada’s clean economy, and its investment reflects the growing policy priority placed on building a domestic critical minerals supply chain capable of feeding North American battery manufacturing.

CGF has previously invested US$85M in Mangrove Lithium, which holds a non-binding offtake memorandum of understanding with Elevra. The overlapping portfolio relationship suggests a degree of industrial logic to CGF’s broader engagement with the lithium processing and conversion ecosystem in Canada. For Elevra, the convertible note structure is notable: the C$80M conditional tranche anticipated in 2027 aligns with the timing of Stage 2 capex, providing capital at the point it is needed without immediate dilution.

The upfront tranche conversion price of A$17.17 per share represents a 40.7% premium to the placement price of A$12.20, suggesting CGF views meaningful upside in Elevra’s equity over the five-year note term. If the notes convert rather than being repaid at maturity, existing shareholders would face additional dilution, though at materially higher prices than today.

Ewoyaa Sale and Portfolio Refocus

On 11 May 2026, the day before the financing announcement, Elevra confirmed it had entered an agreement to sell its interest in the Ewoyaa Lithium Project in Ghana to Zhejiang Huayou Cobalt Co. Ltd. Net proceeds from the transaction are approximately US$63M (A$87M), with closing expected in the first quarter of fiscal year 2027.

The disposal sharpens Elevra’s geographic focus decisively toward North America. Ewoyaa was a development-stage asset that would have required significant capital, permitting effort, and operational attention in a jurisdiction distant from Elevra’s existing infrastructure base. With NAL requiring sustained capital and management attention through to at least 2029, and Moblan being advanced toward a final investment decision, retaining Ewoyaa would have stretched both balance sheet and bandwidth.

The US$63M in Ewoyaa proceeds also contributes materially to the funding stack. Alongside existing net cash of US$59M at 31 March 2026 and the A$421M raised through the placement and convertible notes, Elevra’s stated pro-forma net cash position of US$320.7M (A$442.9M) reflects a company that has fully funded its capital program with a buffer for liquidity and transaction costs of US$142M (A$177M).

Separately, on the same date Elevra announced the purchase of Moblan offtake rights, a transaction that strengthens its commercial position over the Moblan project in Québec ahead of a final investment decision. The combination of the financing, the Ewoyaa sale, and the Moblan offtake acquisition represents a coordinated repositioning of the company around its North American lithium platform.