Toronto-based Lithium Energi Exploration Inc. (LEXI) has commenced a strategic review of the company, with the possibility of an asset or equity sale looming.
LEXI (LEXI-X) is an exploration company focused on the acquisition, exploration and development of lithium brine assets in Argentina. Specifically, in the Lithium Triangle — a region in Argentina, Chile and Bolivia that contains approximately 56 per cent of global lithium resources.
“Our success implementing the new management team’s strategy, particularly the operational aptitude demonstrated by the quick rollout of our drilling program, has successfully garnered the attention and interest of several parties on a potential sale,” Ali Rahman, LEXI’s CEO and director, said in a statement.
“We recognize that the interest in our success and well-located assets warrants a comprehensive strategic review to examine the full range of available alternatives.”
With additional offices in Catamarca, Argentina, LEXI’s portfolio of prospective lithium brine concessions in the province includes approximately 57,000 hectares and a 20 per cent interest in Triangle Lithium Argentina, S.A., which owns an additional 15,000 hectares of concessions.
LEXI's portfolio of properties is divided into four ongoing exploration projects: Antofalla Norte, Antofalla Sur, Trila JV and Hombre Muerto Norte. The first three of these projects are located in and around the Antofalla Salar, one of the largest basins in the region, which is over 130 kilometres long and up to 20 kilometres across.
LEXI’s strategic review
The review process will encompass an evaluation of many potential actions, including equity market transactions, disposition of certain assets or a potential sale or merger, including an assessment of non-binding discussions with potential suitors regarding an acquisition of all or substantially all of LEXI’s assets or equity.
According to a release, there is no promise the strategic review will result in any binding offer or transaction, nor any indication of the pricing of any potential transaction.
The company will continue to pursue its role as an exploration company in Argentina, with the aim of further enhancing its assets.
“Arena is supportive of LEXI’s contemplation of different strategic alternatives, as well as its continued ongoing efforts in drilling and exploring its vast property portfolio. We have repeatedly invested in LEXI, and believe the time is right to unlock value in the Lithium Triangle and from LEXI’s assets,” Vincent DeVito, managing director of Arena Investors, LP, LEXI’s largest shareholder, said in a statement.
Arena Investors is an institutional asset manager founded in 2015 in partnership with the Westaim Corporation (WED-X) with approximately $3.5 billion of assets under management as of the end of 2022. It has over 100 employees in offices globally. While Westaim is based in Toronto, Arena Investors operates out of New York City.
Earlier in September, LEXI appointed Jason Nalewanyj as chief financial officer. Nalewanyj previously held senior finance positions at Aurora Cannabis Inc. as well as strategic roles at Methanex Corporation, FTI Consulting Inc. and MNP LLP.