LE Minerals Holds $60.4 Million Cash, Progresses Graphite Sale and Exploration

Graphite Asset Spin-Out Nears Completion

LE Minerals Limited (ASX:LEL), formerly Lithium Energy, is moving decisively to reshape its portfolio by selling its Queensland graphite projects to M Battery Materials Limited (MBM) for $20 million. The consideration includes $5 million in cash and $15 million in MBM shares, with plans for an in-specie distribution to LE Minerals shareholders pending regulatory and shareholder approvals. This spin-out will give LE Minerals shareholders direct exposure to a dedicated battery materials company focused on critical minerals for the energy transition.

MBM, led by industry veterans Matt Latimore and Gerhard Redelinghuys, targets a minimum $15 million IPO and ASX listing. LE Minerals’ Executive Chairman William Johnson will join MBM’s board as a non-executive director, underscoring the strategic alignment. Shareholder approval for the transaction and share distribution is expected after MBM lodges its IPO prospectus, with conditions including potential escrow arrangements on the consideration shares.

Strong Cash Position Supports Exploration and Development

As of 30 June 2026, LE Minerals reported a robust cash position of $60.4 million, equivalent to $0.539 per share. This financial strength underpins ongoing exploration activities and corporate initiatives. The company’s expenditure during the quarter focused heavily on exploration and evaluation, particularly at its key projects, alongside personnel and administrative costs.

Capricorn Gold-Copper Belt Project: Geophysics and Drilling Progress

LE Minerals has completed extensive airborne geophysical surveys covering over 12,000 line-kilometres across the Capricorn Gold-Copper Belt in central Queensland. These surveys, combining aeromagnetic, radiometric, and electromagnetic techniques, aim to identify high-priority gold and copper targets analogous to the historic Mt Morgan Mine.

First-pass drilling at the Sandy Creek and Bajool prospects returned no significant assay results, tempering immediate expectations. However, the company continues multiple parallel programs including field mapping, surface sampling, and data interpretation, targeting gold-copper mineralisation along the Mt Morgan Intrusive Complex and the Dee Range VMS belt. LE Minerals holds a 51% interest in the Capricorn tenements with the right to acquire full ownership by April 2027.

Graphite Resource Upgrade Confirms High-Grade Potential

Drilling at the Burke and Mt Dromedary graphite deposits has confirmed thick, high-grade graphite intersections, reinforcing the quality of the existing JORC Mineral Resources. The combined inventory includes 9.1 million tonnes at 14.4% Total Graphitic Carbon (TGC) at Burke and 12.7 million tonnes at 14.5% TGC at Mt Dromedary, with ongoing assays pending from recent holes.

An Exploration Target between and outside these deposits suggests an additional 2.8 to 7.4 million tonnes of contained graphite may be delineated, though this remains conceptual pending further drilling. Metallurgical test work has demonstrated the potential to produce high-purity battery anode material, supporting downstream processing ambitions.

White Plains Lithium Project Expands with New Leases and Drilling

In the United States, LE Minerals has secured exploration rights over an additional 2,340 hectares of mineral leases in Utah’s White Plains Lithium Brine Project, expanding its footprint to over 8,500 hectares. The company recently completed a 10-hole direct push drilling program targeting lithium mineralisation in the Upper Aquifer, complemented by surface auger sampling to assess spatial and seasonal variations.

Pending assay results from these programs will inform the definition of a maiden JORC Mineral Resource Estimate. The project benefits from proximity to infrastructure and a mining-friendly jurisdiction, aligning with LE Minerals’ strategic focus on battery minerals in key markets.