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- Arizona Lithium (AZL) is set to boost its lithium resource by 1,200 per cent through the acquisition of Prairie Lithium Corporation
- AZL, along with two of its wholly owned subsidiaries, signed a binding, pre-acquisition agreement with Prairie to acquire 100 per cent of its shares
- Prairie owns Canada’s highest grade lithium brine resource in Saskatchewan, a proprietary direct lithium extraction technology and a DLE technology plant
- Prairie’s inferred mineral resource sits at 4.1 million tonnes of lithium carbonate equivalent, with the acquisition boosting AZL’s lithium resource to 4.4 million tonnes
- AZL shares were up 12.9 per cent, trading at 7 cents at 2:16pm AEDT
Arizona Lithium (AZL) could soon own Canada’s highest grade lithium brine resource, through the acquisition of Prairie Lithium Corporation.
AZL, along with two of its wholly owned subsidiaries, signed a binding, pre-acquisition agreement with Prairie to acquire 100 per cent of its shares.
The transaction would cost Arizona Lithium CAD$40 million (A$44 million) cash and 500 million in AZL shares.
Subject to shareholder and regulatory approval, the acquisition would see AZL take over Prairie’s 72 subsurface mineral permits in south east Saskatchewan in Canada.
It would also give AZL Prairie’s direct lithium extraction (DLE) technology that removes lithium from brines and ore bodies, as well as its DLE technology plant in Saskatchewan.
Prairie’s JORC inferred mineral resource sits at 4.1 million tonnes of lithium carbonate equivalent (LCE) at 111 milligrams per litre lithium, with the acquisition boosting AZL’s lithium resource to 4.4 million tonnes of LCE.
Prairie’s lithium project in the Williston Basin in Saskatchewan holds the highest quality inferred lithium brine resource discovered in Canada to date, which according to AZL, has “significant expansion potential.”
AZL Managing Director, Paul Lloyd said the acquisition would be “transformational” for the company as it advances “as a leader in lithium development and processing in North America.”
“Prairie’s Board and management team have significant experience in lithium processing and technology, which will further bolster AZL’s team and expedite the sustainable development of the Big Sandy Lithium Project in Arizona, through the application of Prairie’s DLE processing technology expertise,” he said.
“The acquisition strongly complements AZL’s strategy of developing a world class Lithium Research Centre in Tempe Arizona, which will function as a technology incubator focussed on the extraction of lithium from a variety of ores and brines.”
Prairie’s board and management team will remain in their roles, with Director Zach Maurer to join the AZL board.
AZL shares were up 12.9 per cent, trading at 7 cents at 2:16pm AEDT.
