Parkway has agreed to sell all its shares subject to various conditions.
Earlier today Lithium Australia said that it intends to make a conditional off-market scrip bid of A$23.8 million for all of the fully paid shares in fellow Western Australia lithium explorer and developer, Lepidico.
The basis of the offer will be one LIT share for every 13.25 Lepidico shares.
Adrian Griffin, managing director for LIT, commented:
"The combined entity is likely to be significantly more attractive for investors and financiers as well as a global leader in lithium processing at a time of unprecedented lithium demand."