Ann: NVX and LEL Combine Natural Graphite Interests, page-17

Nice to see that things are finally moving at Novonix - All the hard work starting to pay off now with tangible definitive agreements! Not going into the details of other agreements but this deal effectively values the Mt Dromedary project at $10m (Assuming a 20c IPO listing).

If we sold the deposit for cash it wont fetch lot more than this given its an early stage project and lacking scale on a stand alone basis. There are some great advantages of structuring it this way

a) NVX retains the upside in form of its 22-28% ownership of NewCo

b) NVX gains exposure into the neighbouring deposit which is slightly ahead of Mt D in its development

c) These 2 deposits along with the 3rd one in the pipeline will achieve a critical mass necessary to justify downstream activities

d) The newco will get its own leadership and funds to focus on these projects and drive them ahead

e) Subject to any lock in period this will be a fairly liquid investment which we can monetize when necessary

@Burty85 raised an important point regarding the BoD and leadership of NewCo - See who gets the reigns.

I personally wont be buying into the IPO regardless of that - happy to just have exposure via NVX's 22-28% ownership. I hate to carry more than a handful of investments at a given time.