Australian company Arizona Lithium has agreed to sell non-core acreage and data from its Prairie Lithium Project in Saskatchewan, Canada, to Homestead Energy for A$11m ($7.47m) in cash.
The transaction involves the divestment of approximately 40,000 acres of crown mineral title and around 11,600 net acres of freehold mineral title, alongside data from the Prairie project.
The sale pertains to a minor, undeveloped segment of the 390,000 net acres that Arizona Lithium holds through its subsidiary, Prairie Lithium.
Arizona Lithium managing director Paul Lloyd said: “The sale of non-core acreage and data is an effective and efficient capital management tool as it provides $11m to the company without diluting shareholders.
“The land component of the transaction is only a small part of our existing 390,000 net acres we held prior to the transaction. Proceeds from the transaction will be used to advance the development of our core acreage and undertake more work towards the stated goal of commercial production at the Prairie Lithium Project in 2025.”
Arizona said the sale forms part of its near-term development plans, as the sold acreage is not considered essential for immediate progress.
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By GlobalData
The company plans to use the proceeds from the sale towards developing the core project area.
Comprising more than 390,000 acres of subsurface permits, the Prairie Lithium Project makes use of conventional oil and gas drilling and completion methods to access lithium-rich brine.
The Prairie Lithium Project aims to unlock a vast untapped lithium brine resource in the Duperow Formation in Saskatchewan’s Williston Basin.
The project utilises direct lithium extraction technology to separate lithium from the brine.
