Pantera Lithium's share price doubled on the ASX on Wednesday as the company announced it will sell its flagship Smackover lithium brine project in Arkansas to US-based Energy Exploration Technologies (EnergyX) for A$40-million.

Under the terms of the binding agreement, Pantera will receive A$6-million in cash and A$34-million in EnergyX common stock, priced at $9.50 a share. The cash portion will be paid in three tranches, while the equity component – equivalent to 2.34-million shares – will be held until either an in-specie distribution to Pantera shareholders is agreed or EnergyX completes an initial public offering.

The sale includes Daytona Lithium, a wholly owned Pantera subsidiary that controls about 14 156 ha of lithium mineral leases in the Smackover Formation.

Pantera executive chairperson Barnaby Egerton-Warburton called the transaction “game-changing", highlighting EnergyX’s backing from global majors including General Motors, Posco, and Eni.

“This is a game-changing transaction for Pantera. It confirms the significant potential of our Smackover project. EnergyX, backed by major global players like General Motors, Posco, and Eni, is a recognised leader in lithium extraction, bringing not only cutting-edge technology, but also deep operational experience and a clear strategic vision that complements our own,” said Egerton-Warburton.

“The transaction delivers immediate capital, operational momentum, and a long-term strategic relationship that could see Pantera own a cornerstone of the North American lithium supply chain,” he added.

The transaction also provides Pantera with exposure to EnergyX’s broader portfolio, including the Black Giant project in Chile and Project Lonestar in Texas, both underpinned by EnergyX’s proprietary LiTAS direct lithium extraction technology.

EnergyX founder and CEO Teague Egan said the acquisition from Pantera was "transformative" for the company. “With 35 000 acres positioned adjacent to Exxon, Chevron, and Standard Lithium in the Smackover, the race is on to see who will be the first to produce commercial battery grade lithium.”

The transaction is expected to close in early October, subject to shareholder approval and other customary conditions. 

Following the sale, Pantera will retain its listing and pursue new opportunities across the critical and battery minerals sectors, funded in part by the A$6-million cash injection. The company confirmed it was actively evaluating several global critical mineral assets.

Pantera's stock traded at A$0.024 a share on Wednesday.