Lithium Africa Receives Two Non-Binding Offers to Fund the Springbok Project, Including a US$60 Million Investment Proposal

Lithium Africa Corp. (TSXV: LAF; FSE: 6MQ; OTCQB: LTAFF) has received two non-binding offers to finance the development of its Springbok Project in the Northern Cape, South Africa. The company is currently engaged in discussions with more than 20 counterparties regarding offtake, prepayment, vendor financing, and project-level equity.

The first offer involves a lithium processing company, described as being backed by a Fortune Global 500 group, subscribing US$60 million in cash for new shares in a new holding company. This entity would hold Lithium Africa’s 70% interest in Namli Exploration & Mining (Pty) Ltd. Under the proposed structure, the investor would take a 55% stake in the holding company, while Lithium Africa retains 45%, equating to an indirect 31.5% interest in Namli, down from its current 70%. The 30% held by the B-BBEE partner remains unaffected. The company states that its retained 45% stake is valued at approximately US$49 million without contributing to the US$60 million program. Implied valuations include a pre-money value of US$70.1 million for 100% of Namli and a post-money holding company value of approximately US$109.1 million. The proposal allocates approximately US$10 million for district-wide drilling and US$50 million for a processing plant.

The second offer comes from a major international commodity trading house and proposes a prepayment facility coupled with an offtake agreement for 100% of the project's spodumene concentrate for the first three years of production. No dollar amount, tenor, or pricing has been disclosed for this offer.

Conditions attached to the offers include due diligence involving confirmatory drilling, definitive agreements, board approvals, TSXV acceptance, shareholder approval, and regulatory approvals. The company reiterated its timeline, stating a project financing decision is expected in the first half of 2027, with first spodumene concentrate production targeted for the second half of 2027, referencing an October 7, 2026 release.

The company provided explicit cautionary language, noting that the offers are non-binding, terms may change materially, and there is no definitive agreement or assurance of completion. The production decision is not based on a feasibility study, and there are currently no Mineral Resources or Mineral Reserves. The release also notes that the Springbok Project sits outside the 50/50 joint venture with GFL International, a Ganfeng Lithium affiliate.

Lithium Africa Corp. (LAF) received a US$60M proposal from a counterparty, arriving three to four months ahead of the financing decision targeted for H1 2027. This offer follows an October 7, 2026 release that described only preliminary, non-binding discussions. The US$60M figure represents approximately 2.3 times the company’s market capitalization of ~US$26M, based on a share price of C$1.45.

Under the terms, Lithium Africa’s 70% stake in Namli is valued at ~US$49.1M on a pre-money basis (70% of US$70.1M). Post-money, the company’s retained 45% stake in the holdco is also valued at ~US$49.1M (45% of US$109.1M). Existing shareholders receive no nominal uplift at the project level while surrendering 55% of their economic interest in the flagship asset. Value creation depends on deploying the US$60M at a return above cost, though there is currently no Mineral Resource, PEA, feasibility study, or capex estimate beyond the headline figure of a "~US$50 million processing plant."

The counterparty, backed by a Fortune Global 500 entity, is conducting confirmatory drilling, which serves as third-party validation of the geology. This arrangement removes the requirement for Lithium Africa to fund construction from its corporate balance sheet and does not dilute the LAF share count. However, the requirement for confirmatory drilling signals that the buyer does not accept the current dataset as bankable.

The scope of the proposed project differs from prior guidance. The October 7 release framed a small-scale DMS plant processing a ~30,000 t stockpile plus newly mined pegmatite. The current release contemplates a ~US$50M processing plant funded by project equity, plus ~US$10M of district drilling. The company has not reconciled which development path it is pursuing or how the capex would be staged.

The prepayment or offtake offer would lock 100% of the first three years of concentrate production to a single trader. No prepay size or price mechanism has been disclosed, potentially giving away early-cycle price upside. This marks the third strategy shift in roughly eight months for the flagship asset: from a February 2026 thesis of near-term cash flow from a stockpile sale to fund non-dilutive exploration, to a small-scale DMS approach in October, and now to project-level equity and offtake funding. The original stockpile sale has not closed.

Lithium Africa’s stock closed at C$0.78 on October 8 and C$1.45 on October 19, reflecting an ~86% move in seven sessions. This included three consecutive ~20%+ up days on October 15, 16, and 19. A material portion of the positive news may already be reflected in the share price.

The release does not disclose the identity of either counterparty, the size or pricing of the prepayment facility, any valuation methodology or resource basis for the US$70.1M pre-money figure, the capex and mine plan behind the US$50M plant, or how the B-BBEE partner and Namli’s existing obligations interact with a new holdco.

Lithium Africa Corp. (TSXV: LAF) is a lithium exploration and development company that completed a reverse takeover of Lombard Street Capital Corp. (Cayman continuation) on February 11, 2026. Trading on the TSXV began on February 19, 2026, with additional listings on the Frankfurt exchange (6MQ) on March 20, 2026, and the OTCQB (LTAFF) on May 21, 2026. The company’s flagship asset is the Springbok Project in the Northern Cape of South Africa, located approximately 50 km north of Springbok town on the N7 corridor, roughly 100 km from the deep-water port at Saldanha Bay. The project is accessed directly by Lithium Africa, separate from the Ganfeng joint venture.

Lithium Africa holds a 70% interest in Namli Exploration & Mining (Pty) Ltd, acquired in two phases: 30% on March 30, 2026, and the remaining 40% following Section 11 consent received on July 27, 2026. The B-BBEE partner retains a 30% stake. The Springbok assets include the past-producing Norrabees I spodumene mine under mining permit NC10950MP covering 5 hectares, a ~30,000-tonne mineralised pegmatite stockpile, and a 1,675 km² prospecting right (NC13301PR) hosting over 40 known spodumene-bearing pegmatites across a reported 50 km of strike.

There are no current Mineral Resources or Mineral Reserves. Historical data includes an inferred estimate of 71,679 tonnes at 1.27% Li2O, derived from ten holes drilled in 2018-2019 totalling 321.77 m. This estimate comprises 41,420 tonnes at 1.01% Li2O in-situ and 30,259 tonnes at 1.61% Li2O in the stockpile. Historic intercepts include 18.34 m at 1.92% Li2O and 32.66 m at 1.09% Li2O.

Metallurgical testing in September 2020 produced a first-stage concentrate averaging 4.89% Li2O via dense media separation (DMS), with re-processing of a ~50 kg fraction yielding 6.41% and 6.76% Li2O. Two-stage DMS testwork on a 13-tonne bulk sample in October 2026 has not been verified by a Qualified Person.

Recent drilling at Norrabees I includes NB1DD26-004, which returned 8.0 m at 1.70% Li2O from 21.0 m, including 4.0 m at 2.59% Li2O; NB1DD26-003, which returned 7.5 m at 1.97% Li2O from 18.5 m, including 6.0 m at 2.27% Li2O; and NB1DD26-001, which returned 4.0 m at 2.25% Li2O from 2.0 m. True widths are unknown. As of October 10, 2026, 2,930.37 m had been completed in 94 holes, averaging roughly 31 m per hole.

The company plans to shift from selling DSO stockpiles to on-site dense media separation, targeting first spodumene concentrate in the second half of 2027. An initial Mineral Resource Estimate is targeted for the first half of 2027, followed by a Preliminary Economic Assessment. A financing decision is expected in H1 2027, with construction planned for mid-2027 subject to permits and financing.

The company also holds interests in the Adzopé District in Côte d'Ivoire, including the Adzopé and Agboville licences, within a 50/50 joint venture with GFL International. Trenching on the Saby Trend returned 8.0 m at 1.10% Li2O, while the Kanien Trend returned rock samples up to 1.98% Li2O, with 14 of 19 samples above 1.0% Li2O. A 2,000 m RC program was paused at 1,137 m for the rainy season, with assays targeted for Q4 2026.

The July 2026 NI 43-101 Technical Report on Springbok was prepared by George van der Walt of The MSA Group. Benjamin Gelber, P.Geo., serves as a consultant and non-independent Qualified Person.