Pantera Secures A$40M Deal with EnergyX, Gains Equity in Lithium Tech
Pantera Lithium Limited has agreed to sell its Smackover Lithium Project subsidiary to Energy Exploration Technologies Inc. for A$40 million, significantly strengthening its financial position and strategic exposure to U.S. lithium assets.
- Binding agreement to sell Smackover Project for A$40 million
- Transaction includes A$6 million cash and A$34 million in EnergyX shares
- Arkansas legislation SB568 introduces fiscal incentives for lithium development
- Arkansas Oil & Gas Commission sets a competitive 2.5% lithium royalty
- Pantera to focus on expanding U.S. critical minerals footprint post-sale
A Transformative Deal for Pantera
In a landmark move, Pantera Lithium Limited (ASX – PFE) has entered into a binding agreement to sell its Smackover Lithium Project subsidiary, Daytona Lithium Pty Ltd, to U.S.-based Energy Exploration Technologies Inc. (EnergyX) for a total consideration of A$40 million. The deal, comprising A$6 million in staged cash payments and A$34 million in EnergyX common stock, is expected to close by early October 2025, subject to shareholder and regulatory approvals.
This transaction marks a pivotal inflection point for Pantera, providing immediate liquidity and a significant equity stake in EnergyX, a leader in lithium technology with high-potential assets across the Americas, including the advanced Black Giant Project in Chile. The deal not only crystallizes shareholder value but also positions Pantera to pursue further strategic opportunities within the critical minerals sector in the U.S.
Regulatory Tailwinds in Arkansas
Pantera’s Smackover Project benefits from recent legislative and regulatory developments in Arkansas, a state rapidly emerging as a competitive lithium jurisdiction. The Arkansas Senate’s passage of Senate Bill 568 (SB568), now Act 1012, introduces substantial fiscal incentives including sales and use tax exemptions for lithium exploration, development, and processing. This legislation aligns with broader U.S. federal initiatives aimed at securing domestic battery material supply chains.
Complementing this, the Arkansas Oil & Gas Commission has established a 2.5% lithium royalty payable only upon sale of lithium carbonate or equivalent products, rather than at extraction. This royalty framework provides fiscal clarity and enhances the economic viability of lithium brine projects in the Smackover Formation, directly benefiting Pantera’s project economics and investor confidence.
Strategic Outlook and Financial Position
With the transaction underway, Pantera’s executive leadership highlights the strengthened financial position that will enable the company to sharpen its focus on expanding its U.S. critical minerals strategy. The immediate cash injection and equity exposure to EnergyX’s lithium assets provide operational flexibility to explore additional high-potential zones in Arkansas and beyond.
During the quarter ending 30 June 2025, Pantera reported exploration expenditure of A$251,000 and director fees of A$145,000, with cash reserves sufficient to sustain operations until the EnergyX deal closes. The company is actively advancing lease acquisitions and exploring underexplored elements critical to the U.S. government’s domestic supply chain ambitions.
Pantera’s CEO Barnaby Egerton-Warburton emphasised the company’s readiness to unlock further value through strategic partnerships and new opportunities, leveraging its expertise in subsurface modelling and regulatory engagement to remain a key player in the evolving U.S. lithium landscape.
Bottom Line?
Pantera’s strategic pivot and strengthened balance sheet set the stage for accelerated growth in the U.S. critical minerals sector.
Questions in the middle?
- How will EnergyX’s share price performance impact Pantera’s equity upside?
- What new critical minerals opportunities will Pantera pursue post-transaction?
- How might evolving U.S. policies further influence lithium project economics in Arkansas?
