ReNu Energy announces asset sale

ReNu Energy (ASX:RNE) has sold its legacy geothermal assets to Hydro Lit Pty Ltd for $700,000. The assets, located in the Cooper Basin, South Australia, include historical data, samples, and a Geothermal Retention Licence. The sale involves cash and convertible notes, offering ReNu potential upside through Hydro Lit's lithium exploration.

ReNu Energy's strategic asset divestment

ReNu Energy's sale of its geothermal assets to Hydro Lit marks a strategic divestment of non-core assets, with a total consideration of $700,000. The assets were targeted for geothermal activities in the Cooper Basin and have now been sold due to interest in lithium recovery potential. The transaction allows ReNu to benefit from Hydro Lit's lithium exploration progress through structured payments in cash and convertible notes. This deal grants ReNu a stake in Hydro Lit, aligning with its corporate strategy to capitalize on emerging opportunities in renewable energy and sustainable resources. The conversion of notes, pending regulatory approval, is set to provide ReNu with a potential minority shareholding in Hydro Lit, under 10%, as the latter advances towards becoming a leading producer of green lithium.

Executive insights on geothermal asset sale

We are pleased to have created value from these legacy assets and structured a transaction that provides ReNu Energy exposure to Hydro Lit's future success,' said Greg Watson, Managing Director of ReNu Energy. 'The data and samples acquired will support Hydro Lit in its mission to produce lithium carbonate or lithium hydroxide with net-zero emissions,' remarked Daniel Fraser, Managing Director of Hydro Lit.