Global Battery Materials (GBM), a privately held Canadian battery materials company, has agreed to acquire graphite developer Lomiko Metals (TSXV: LMR, OTC: LMRMF) in an all-cash transaction that values Lomiko at roughly C$11 million (US$7.9 million) on a fully diluted basis. The deal hands GBM control of the La Loutre graphite project in southern Quebec, strengthening the upstream end of the North American natural graphite supply chain.
Under the arrangement agreement, GBM will pay C$0.13 per share, a 71% premium to Lomiko’s 20-day volume-weighted average trading price on the TSX Venture Exchange through July 27. The acquisition requires shareholder, court and regulatory approvals and is expected to close in the fourth quarter of 2026. Lomiko’s board unanimously recommends shareholders vote in favour of the deal. Directors and officers, along with other shareholders representing approximately 18.19% of the equity, have signed voting support agreements. Should the transaction be terminated under certain circumstances, Lomiko would pay a termination fee of C$425,000.
To fund working capital ahead of closing, GBM is providing a secured bridge loan of up to C$800,000. The facility carries an 8% annual interest rate and matures no later than 18 months after the initial advance. If the deal collapses because of GBM’s financing failure, the maximum loan amount rises to C$1.2 million, and Lomiko may elect to convert the outstanding principal into shares at C$0.13 apiece.
The La Loutre property, located about 180 kilometres northwest of Montreal, is among North America’s largest flake graphite deposits. A preliminary feasibility study published in March outlined an after-tax net present value of C$617.4 million, an internal rate of return of 24.7% and a 3.2-year payback period, assuming an average graphite price of C$1,524 per tonne. Initial capital costs were estimated at C$504.6 million. The project, near the town of Mont-Tremblant, has faced community opposition over pollution concerns.
“This acquisition marks another decisive step in our strategy to consolidate the fragmented battery supply chain and build a fully integrated graphite platform spanning mine to anode,” GBM Chief Executive Officer Eric Miller said. “Lomiko brings a portfolio of natural graphite assets that strengthen our North American footprint and deliver the scale to support a rapidly growing anode materials market.”
GBM is concurrently working to restart the Kearney graphite mine in Ontario, targeting production by 2028. A preliminary economic assessment this month valued that project at US$183 million and pegged future cash flow at nine times the initial capital cost.
Following the announcement, Lomiko shares surged 60% to C$0.12 on the Toronto exchange, giving the company a market value of about C$9.6 million. The stock has traded between C$0.06 and C$0.22 over the past year. Once the acquisition closes, GBM intends to launch a structured review of La Loutre and begin engagement with local rights holders and stakeholders to define the project’s next development phase. Lomiko’s early-stage exploration properties in Quebec, including Ruisseau, will also be folded into GBM’s platform.
