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Canadian Business Journal, Standard Lithium and Lanxess Final Plan for First Commercial Lithium Project in Arkansas

Vancouver, British Columbia, February 24, 2022 (GLOBE NEWSWIRE) — Standard Lithium Ltd. (“”Standard lithium” or “society(TSXV: SLI) (NYSE.A: SLI) (FRA: S5L) is an innovative technology and lithium project development company and has reached an agreement (“agreement”), February 23, 2022, Lanxess Corporation, a strategic partner (“Lanxess”), Streamlining and facilitating the development plans for the first commercial lithium project in Arkansas to be built at the operational LANXESS facility in El Dorado, Arkansas (“).plan“). Under the contract, Standard Lithium manages all development of the project up to the completion of the front-end engineering design (“feed“) Study. Standard Lithium holds a majority stake in at least 51% of the project and may hold 100% of the project. We also have the Southwestern Arkansas project, all proprietary extraction technology, related. We retain 100% ownership of our intellectual property and know-how.

Robert Mintak, CEO of Standard Lithium, commented:This contract is based on a successful partnership established between companies. By signing this agreement, Standard Lithium will take ownership of the project and its development schedule and provide a clear path to achieving the first new commercial lithium production in the United States for over 50 years.1We have already begun the process of involving and integrating members of the strategic team for the success of this project. With a recent investment from our largest shareholder, Koch Strategic Platforms We are fully funded to complete all planned project milestones leading to the final feasibility study scheduled to be completed in the fourth quarter of 2022.“.

Main highlights:

  • Standard Lithium initially forms a wholly owned company (“Project company”) Owns 100% of the project before FEED and during FEED engineering research (see news release dated January 20).th, 2022). FEED engineering is used to create the final feasibility study of NI 43-101 (“DFS”) Fourth quarter of 2022.
  • LANXESS provides project brine supply, project site leasing, and project right of way, infrastructure, and other services through a series of commercial contracts.
  • Standard Lithium provides project companies with a range of market fee-based licenses for intellectual property.
  • Standard Lithium can leverage its intellectual property, extraction technology, and know-how at the 100% owned Southwest Arkansas Project, other specific sites within Arkansas, and all non-Arkansas project sites to manage future development. And maintain ownership. Of its IP portfolio;
  • LANXESS is obliged to assist in the development of the project and has the option of acquiring up to 49% to 30% or more of the project company’s stake at a price equal to SLL’s evaluable share upon completion of DFS. Total investment in the project company.

If LANXESS takes ownership:

  • Both parties will pay the project’s construction funds in an evaluable amount. When,
  • LANXESS reserves the right to acquire some or all of the off-takes of lithium carbonate produced in commercial plants on a market-based basis, minus fees.

If LANXESS does not take ownership:

  • Standard Lithium owns 100% of the project, including regular dividends, distributions, or similar rights.
  • Standard Lithium can withdraw bids from other stakeholders to purchase up to 49% of the project company. When,
  • LANXESS is part or all of the off-take of lithium carbonate produced in a commercial plant at a price that is up to 20% less than the market price, taking into account some major commercial agreements agreed with LANXESS. Has the right to acquire. (Includes project brine supply and disposal costs, project site leasing costs and road rights, infrastructure, and other services of the project).

The parties also agreed that the development of the second and third projects for LANXESS real estate would be jointly undertaken and that the parties would play the same role using the same contract structure as the first project. LANXESS also has other commercial contracts required for development (eg, site leases, brine supply / disposal, etc.).

Advisor
Stifel Nicolas Canada Inc. served as financial adviser to Standard Lithium during the negotiations for this Agreement.

About Standard Lithium Ltd.
Standard Lithium is an innovative technology and lithium development company. The company’s flagship project is located in southern Arkansas, working on testing and demonstrating the commercial feasibility of lithium extraction from over 150,000 acres of permitted brine operations. We operate the first industrial-scale direct lithium extraction demonstration plant at LANXESS’s South Plant facility in southern Arkansas. The demonstration plant will use our proprietary LiSTR technology to selectively extract lithium from LANXESS tail brine. Demonstration plants are used for proof-of-concept and commercial feasibility studies. The scalable and environmentally friendly process eliminates the need for evaporative ponds, reduces processing times from months to hours, and significantly improves the effective recovery of lithium. We are also developing resources for more than 30,000 acres of individual brine leases (called the Southwestern Arkansas Lithium Project) in southwestern Arkansas and approximately 45,000 acres of mineral leases in the Mojave Desert of San Bernardino County, California. I am.

Standard Lithium is jointly listed on the TSX Venture Exchange and NYSE American under the trading code “SLI”. It is traded on the Frankfurt Stock Exchange under the “S5L” symbol. Please visit our website http://www.standardlithium.com.

On behalf of the Board of Directors of Standard Lithium Ltd.
Robert Mintak, CEO and Director

Neither the TSX Venture Exchange nor its regulatory service provider (the term is defined in the TSX Venture Exchange Policy) is responsible for the validity or accuracy of this release.

This news release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable Canadian Securities Act. When used in this news release, “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “predict”, “may”, Similar words or expressions, such as “schedule,” are forward-looking statements or information. These forward-looking statements or information include expected development and future phases of the project, timeline of DFS completion, final document negotiations with LANXESS, accuracy of mineral or resource exploration activities, and reserves. May be related to quantity or resource, regulatory or governmental requirements or approval, reliability of third party information, continued access to mineral properties or infrastructure, market fluctuations in lithium and its derivatives, Canada And changes in exploration costs and government regulations in the United States, and other factors or information. Such statements represent our current views of future events and, inevitably, we consider reasonable, but inherently significant business, economic, competitive, political and social. It is based on many assumptions and estimates of exposure to target risks and contingencies. Uncertainty. Due to many known and unknown factors, the outcome, performance, or outcome may differ materially from the outcome, performance, or outcome expressed or implied by such forward-looking statements. We update these forward-looking statements or information with applicable laws, rules, and rules.

1 See https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-lithium.pdf


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Canadian Business Journal, Standard Lithium and Lanxess Final Plan for First Commercial Lithium Project in Arkansas

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