Lithium AustraliaNL will divest its five graphite projects in Western Australia and focuson lithium.
The returns will be distributed in specie to the company's shareholders,the company said May 10.
Managing Director Adrian Griffin said, "To maintain forthe investing public, our higher priority lithium focus, we now intend to divestour interest in the graphite portfolio and return much, if not all of the valuegenerated in doing so, to Lithium Australia shareholders."
In 2014, the company started acquiring both graphite and lithiumassets to build a portfolio for the lithium batteries market.
The company owns the Yalbra, Donnelly River, Northern Gully,Osmond Range and the Greenhills lithium projects, which cover 589 square kilometers.
In early May, Lithium Australia and Cazaly Resources Ltd. combined their current and future lithiummineral interests within a 100-kilometer radius of Kalgoorlie, Western Australia,for an initial period of five years to formthe Goldfields Lithium Alliance.