Investors pour in $10m to watch Arizona advance its lithium projects
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Arizona Lithium has successfully rattled the tin to raise $10m for further development of its Prairie and Big Sandy lithium projects and research centre, which includes a resource upgrade, pilot plant construction and tying up a pre-feasibility study (PFS).
Funds were raised via a share placement to institutional investors at 0.025c per share via two tranches, in shares and exercisable options.
Prairie, located in Saskatchewan, has a current MRE of 4.1Mt lithium concentrate equivalent (LCE) @ 111mg/L Li, which Arizona Lithium (ASX:AZL) says has “significant expansion potential” still to come.
On top of the completion of a mineral resource estimate (MRE) upgrade and the PFS, AZL will also start early works on a definitive feasibility study for the brine project.
“We are pleased to have successfully completed the placement to raise $10m to further advance the development of the Prairie project and complete construction of the Lithium Research Centre,” AZL managing director, Paul Lloyd says.
“Importantly, the completion of the pre-feasibility study at the Prairie project and early works on the definitive feasibility study will add significant value to the company.”
AZL is continuing testing direct lithium extraction (DLE) tech at Prairie and has elected to move forward with a larger third phase DLE pilot plant in Saskatchewan planned for November.
“While Prairie Lithium continues to develop, scale and operate its own DLE technology, the company is also testing other DLE technologies to ensure it deploys the most cost-effective technology onto its resource,” Lloyd says.
AZL’s says its Lithium Research Centre – located in Arizona near its Big Sandy lithium project – 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.
Once completed, the LRC will then be able to commence operations of the pilot plant to treat some of the bulk sample taken from Big Sandy, which has an indicated and inferred MRE of 32.5Mt grading @ 1,850ppm Li for 320,800t of LCE.
The MRE represents just 4% of the Big Sandy project area, and AZL’s exploration target estimates it to contain 271.1-483.15Mt grading at a minimum 1,000ppm and perhaps >2,000ppm Li.
AZL has a permit for exploration at Big Sandy that includes a proposed 145 exploration holes and a bulk sample which is awaiting approval from the Bureau of Land Management.
This article was developed in collaboration with Arizona Lithium, 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.