Elevra Lithium (ASX:ELV) said it has purchased and terminated a spodumene concentrate offtake agreement previously granted to an investment vehicle managed by Waratah Capital Advisors in relation to the Moblan lithium project, according to a Tuesday filing with the Australian bourse.

Moblan is 60% owned by Elevra and 40% by Investissement Quebec.

The deal eliminates a life-of-mine obligation that previously allowed Waratah to buy 10% of the company's production share at a 5% discount to market prices, per the filing.

The company will issue Waratah $5 million in ordinary shares at AU$12.20 apiece and $500,000 in options at a 50% premium, with the options exercisable 120 days after closing on Tuesday and expiring three years thereafter, in exchange for terminating the agreement, the filing said.

The repurchase strengthens the company's position at Moblan by eliminating a discounted long-term sales commitment and giving it full control of offtake, increasing flexibility for supply and financing arrangements, the filing added.