Arizona Lithium raises $12m to advance US research centre and processing plant

Arizona Lithium has raised $12m via a placement to purchase the land for its lithium processing plant in the USA.

The company will also use the funds for the expansion and operation of its lithium research centre, which will function as a technology incubator focused on the extraction of lithium from a variety of ores and brines, as well as the production of battery- grade lithium chemicals for current and future battery technologies.

Plus, the cap raising will be used to secure IP protection over Arizona Lithium’s (ASX:AZL) processing technology, and to facilitate the addition of Brett Rabe to the management team – who brings expertise in lithium processing technology to his role as Chief Technical Officer.

Ready to rapidly advance Big Sandy

AZL’s pro-forma cash position following the raise will be $54m, positioning the company to rapidly advance the Big Sandy project, with a Permit of Exploration (POE) including 145 exploration holes and a bulk sample at the project awaiting Bureau of Land Management (BLM) approval.

“With global market conditions having changed since AZL announced the raise in March 2022, Tranche 2 of the March placement was cancelled, with the price adjusted accordingly for this placement,” MD Paul Lloyd said.

“[This positions] the company with a substantial capital positioning of $54m post raise, facilitating the rapid development of Big Sandy, with a focus on the Lithium Research Centre and processing technologies.”

This article was developed in collaboration with Arizona Lithium Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.