Lomiko Metals Enters Into Definitive Agreement to Be Acquired by Global Battery Materials

Lomiko Metals Inc. (LMR:TSXV) has entered into a definitive arrangement agreement to be acquired by Global Battery Materials Corp. (GBM) in an all-cash transaction valued at approximately C$11 million on a fully-diluted basis. Shareholders will receive C$0.13 per share, representing a 71% premium to the 20-day volume-weighted average trading price on the TSX Venture Exchange for the period ending July 27, 2026.

The transaction is structured as a court-approved plan of arrangement under British Columbia law and requires securityholder approval at a special meeting expected in September 2026, as well as court and regulatory approvals. Closing is targeted for Q4 2026. A concurrent senior secured bridge loan facility from GBM of up to C$800,000, expandable to C$1,200,000 in certain termination scenarios, will fund working capital until closing. The facility carries an 8.0% annual interest rate and matures no later than 18 months after the initial advance.

Directors and officers holding approximately 18.19% of the issued shares have entered into voting support agreements. If the deal is terminated by Lomiko for a superior proposal, a C$425,000 termination fee is payable to GBM. Post-closing, GBM intends to delist Lomiko and cease its reporting issuer status. GBM describes itself as a vertically integrated battery materials company building a North American supply chain, and it views Lomiko’s La Loutre graphite project and other assets as strategic feedstock for its anode materials platform.

Lomiko Metals Inc. (LMR) has received a C$0.13 all-cash takeover offer, a move that comes after the company faced severe financial stress. The Q3-2026 MD&A explicitly warned of material uncertainties casting doubt on the company’s ability to continue as a going concern. Lomiko reported a working capital deficit of $234,831 and a net loss of $1.49 million for the nine months ended April 30, 2026. To fund operations, the company relied on repeated small private placements priced between C$0.10 and C$0.12 per share. The stock had slumped to C$0.06–C$0.08, reflecting the market’s recognition of acute liquidity risk.

The C$0.13 offer represents a 71% premium above the 20-day VWAP. This price is substantially above the levels at which the company recently raised capital, including C$0.10 in April 2026 and C$0.09–C$0.10 in late 2025. The acquisition validates the long-term potential of the La Loutre project, which a Preliminary Feasibility Study (PFS) showed with an after-tax NPV of C$617 million. However, it also underscores that Lomiko as a standalone entity lacked the balance sheet and scale to finance the C$504.6 million initial capex and sustain operations. Bridge loans and voting support from insiders signal a high probability of closing, although the schedule is not yet certain.

Lomiko Metals Inc. is a Quebec-focused critical minerals explorer and developer. Its flagship asset is the 100%-owned La Loutre flake graphite project in southern Quebec. A Pre-Feasibility Study filed May 8, 2026, demonstrates robust economics: after-tax NPV (8%) of C$617.4 million, IRR 24.7%, initial capex C$504.6 million, 28-year mine life producing 2.15 million tonnes of 97% Cg concentrate. The project is supported by US$8.35 million from the U.S. Defense Production Act and C$4.9 million from Canada’s CMRDD program, underscoring its strategic importance for the North American battery supply chain. Lomiko also holds early-stage graphite properties in Quebec (Ruisseau, Meloche, etc.) and the Yellow Fox antimony-gold-silver-REE property in Newfoundland, where soil sampling has yielded strong anomalies.